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Macroeconometric Modelling for Policy Evaluation and Design

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  • Willem H. Buiter
Abstract
The paper reviews recent developments in macroeconomic theory and their implications for econometric modelling and for policy design. The following issues are addressed. 1) The theoretical and practical problems of modelling sequence economies. 2) Problems of evaluating the role of money given the absence of reasonable microfoundations for monetary theory. 3) The implications of the view that macroeconomic models should be viewed as non-cooperative differential games. 4) Identification and estimation of the policy-invariant structure of rational expectations models. 5) Time inconsistency of optimal plans and 6) The welfare economics of stabilization policy and the need to pay much greater attention to market structure if a market failure-based justification for stabilization policy is to be developed.

Suggested Citation

  • Willem H. Buiter, 1981. "Macroeconometric Modelling for Policy Evaluation and Design," NBER Technical Working Papers 0013, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberte:0013
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    References listed on IDEAS

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    1. Sargent, Thomas J, 1981. "Interpreting Economic Time Series," Journal of Political Economy, University of Chicago Press, vol. 89(2), pages 213-248, April.
    2. Buiter, Willem H. & Miller, Marcus, 1980. "Monetary Policy And International Competitiveness," Economic Research Papers 269135, University of Warwick - Department of Economics.
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    13. Willem H. Buiter & James Tobin, 1978. "Debt Neutrality: A Brief Review of Doctrine and Evidence," Cowles Foundation Discussion Papers 497, Cowles Foundation for Research in Economics, Yale University.
    14. Willem H. Buiter & James Tobin, 1978. "Fiscal and Monetary Policies, Capital Formation, and Economic Activity," Cowles Foundation Discussion Papers 512, Cowles Foundation for Research in Economics, Yale University.
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    19. Buiter, Willem H, 1980. "The Macroeconomics of Dr. Pangloss: A Critical Survey of the New Classical Macroeconomics," Economic Journal, Royal Economic Society, vol. 90(357), pages 34-50, March.
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    1. Willem H. Buiter, 1984. "Comment on T. J. Sargent and N. Wallace: Some Unpleasant Monetarist Arithmetic," Palgrave Macmillan Books, in: Brian Griffiths & Geoffrey E. Wood (ed.), Monetarism in the United Kingdom, pages 42-60, Palgrave Macmillan.

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