Publisher's Synopsis
Macroeconomics is frequently criticized for the tendency of theory to diverge from its empirical basis. Furthermore, the broad consensus about the proper way to carry out empirical research has all but collapsed, creating a number of rival schools and approaches which this important book presents. The book begins with Lawrence H. Summers' critique of over-rigorous demands for a theoretical base for empirical models. This is followed by Finn Kydland and Edward Prescott's argument for calibration and simulation, as typified by the real business cycle school, Graham Mizon's exploration of the Hendry approach and Edward Leamer's presentation of the Bayesian method of inference. Finally, Clive Granger analyses possible future developments in the nonlinear analysis of economic series and Kenneth Wallis and John Whitley survey actual model-building and use with particular reference to the Scandinavian economies.
