Aggregate Structural Macroeconomic Modelling: A Reconsideration and Defence

38 Pages Posted: 19 Aug 2012

See all articles by Mark Setterfield

Mark Setterfield

New School for Social Research

Shyam Gouri Suresh

Davidson College

Date Written: August 18, 2012

Abstract

Aggregate structural macroeconomic modelling (ASMM) is frequently criticized for being ad hoc and justified (if at all) only as a pragmatic expedient. This paper argues instead that ASMM is consistent with the principles of well-established bodies of social theory. Appeal to these principles reveals that aggregate-level analysis of the type exemplified by ASMM is likely necessary and (in some circumstances) certainly sufficient for the successful prosecution of macroeconomic enquiry.

Keywords: Macroeconomics, microfoundations, macrofoundations, aggregate structural models

JEL Classification: B41, B22

Suggested Citation

Setterfield, Mark and Gouri Suresh, Shyam, Aggregate Structural Macroeconomic Modelling: A Reconsideration and Defence (August 18, 2012). Available at SSRN: https://ssrn.com/abstract=2131750 or http://dx.doi.org/10.2139/ssrn.2131750

Mark Setterfield (Contact Author)

New School for Social Research ( email )

6 East 16th Street
New York, NY 10003
United States

Shyam Gouri Suresh

Davidson College ( email )

United States

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