The Possibility of Ideological Bias in Structural Macroeconomic Models

PSE-Ecole d'économie de Paris (Postprint) from HAL

Abstract: An ideologically biased expert faces trade-offs in model design. The perceived model must be autocoherent—its use by all agents delivers a self-confirming equilibrium. Policy may be influenced by manipulating the Keynesian multiplier or the Phillips curve parameters. Ideological bias may arise in a way that resembles well-known historical controversies. A larger reported Keynesian multiplier is favored by more left-wing economists, as is a flatter inflation output trade-off. Some combinations of parameters must be truthfully revealed, illustrating the tight link between parameter identification and the scope for bias that is implied by the autocoherence conditions.

Date: 2018-01
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Published in American Economic Journal: Macroeconomics, 2018, 10 (1), pp.216-241. ⟨10.1257/mac.20140154⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: The Possibility of Ideological Bias in Structural Macroeconomic Models (2018)
Working Paper: The Possibility of Ideological Bias in Structural Macroeconomic Models (2018)
Working Paper: The possibility of ideological bias in structural macroeconomics models (2011)
Working Paper: The possibility of ideological bias in structural macroeconomic models (2011)
Working Paper: The possibility of ideological bias in structural macroeconomic models (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:pseptp:halshs-01802688

DOI: 10.1257/mac.20140154

Access Statistics for this paper

More papers in PSE-Ecole d'économie de Paris (Postprint) from HAL
Bibliographic data for series maintained by Caroline Bauer ().