Aggregate Structural Macroeconomic Modelling: A Reconsideration and Defence
38 Pages Posted: 19 Aug 2012
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: Suggested Citation