Helping a Great Economist: Arthur Okun

 

Macroeconomics today would be much more stabilization-relevant but for Arthur Okun’s untimely death in 1980.  His posthumously published Prices and Quantities proposed a promising class of macro modeling centrally microfounded by intra-firm optimization. Absent his insight, standing, and powers of persuasion, … 
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Undergraduate Textbooks

 

The GEM Project has a special interest in the on-going debate about undergraduate macro textbooks. In the generation that followed the New Keynesian seizure of the macro academy’s mainstream, their signature dynamic stochastic general-market-equilibrium theory (enriched with rational market frictions) … 
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Stabilization Characteristics of the Pandemic

I have been tinkering with the GEM Project’s rational-behavior model of extreme instability, looking at whether it can be usefully adapted to the CONVID-19 pandemic. (See Annable and Schechter, “Modeling Extreme Instability,” summarized earlier on  this Blog.) Originally constructed during … 
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Helping a Great Economist: Robert Lucas

The overriding objective of Robert Lucas’s theoretical contributions was to restore the primacy of rational behavior to macroeconomics. In his modeling, agents are coherently self-interested. In particular, they make cost-effective use of available information to inform their choices. The GEM … 
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Helping a Great Economist: Ben Bernanke

Great economists are not limited to model-builders making important contributions to economic theory. Economist policymakers who substantially enhance our collective well-being are eligible for inclusion in the Helping-Hand series.

No policymaker deserves being recognized as a great economist more than Ben … 
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Helping Great Economists: Bob Solow

Providing the mainstream literature’s go-to explanation for trend macrodynamics in developed economies is Robert Solow’s (1956, 1957) neoclassical growth theory. Once a colleague of mine at MIT and co-founder of morale-centric Efficiency Wage Theory, Solow is best known for his … 
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