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Causality in Macroeconomics

Name: Causality in Macroeconomics
Brand: Cambridge University Press
SKU: 04089188
Price: 58.19 EUR
Availability: InStock
Author: Kevin D Hoover
ISBN: 9780521002882

Kevin D Hoover

Language

English

Book Paperback

Libristo code: 04089188

Publishers Cambridge University Press, August 2001

First published in 2001, Causality in Macroeconomics addresses the long-standing problems of causali... Full description

Libristo code: 04089188

142 b

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First published in 2001, Causality in Macroeconomics addresses the long-standing problems of causality while taking macroeconomics seriously. The practical concerns of the macroeconomist and abstract concerns of the philosopher inform each other. Grounded in pragmatic realism, the book rejects the popular idea that macroeconomics requires microfoundations, and argues that the macroeconomy is a set of structures that are best analyzed causally. Ideas originally due to Herbert Simon and the Cowles Commission are refined and generalized to non-linear systems, particularly to the non-linear systems with cross-equation restrictions that are ubiquitous in modern macroeconomic models with rational expectations (with and without regime-switching). These ideas help to clarify philosophical as well as economic issues. The structural approach to causality is then used to evaluate more familiar approaches to causality due to Granger, LeRoy and Glymour, Spirtes, Scheines and Kelly, as well as vector autoregressions, the Lucas critique, and the exogeneity concepts of Engle, Hendry and Richard.