Journal of Economic Literature
ISSN 0022-0515 (Print) | ISSN 2328-8175 (Online)
Horizons of Understanding: A Review of Ray Fair's Estimating How the Macroeconomy Works
Journal of Economic Literature
vol. 46,
no. 3, September 2008
(pp. 685–703)
Abstract
Ray Fair's Estimating How the Macroeconomy Works is the latest in a series of books by Fair that build, estimate, and apply his macroeconometric model to study the U.S. economy. In this book, Fair updates the model to incorporate the most recent data and uses it to analyze several important empirical questions, such as whether the U.S. economy moved into a new age of high productivity in the last half of the 1990s and the dynamics of prices, output, and unemployment. This review places his work in the context of the historical evolution of aggregate econometric models, compares it with the current developments in the estimation of dynamic stochastic general equilibrium models, and discusses some salient aspects of Fair’s contributions.Citation
Fernández-Villaverde, Jesús. 2008. "Horizons of Understanding: A Review of Ray Fair's Estimating How the Macroeconomy Works." Journal of Economic Literature, 46 (3): 685–703. DOI: 10.1257/jel.46.3.685JEL Classification
- E23 Macroeconomics: Production
- E24 Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital
- O47 Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
- E17 General Aggregative Models: Forecasting and Simulation
- E31 Price Level; Inflation; Deflation
- E65 Studies of Particular Policy Episodes