How empirical is ’empirical’ macroeconomics?

Created
Tue, 13/08/2024 - 17:10
Updated
Tue, 13/08/2024 - 17:10
At a first glance, DSGE models seem to imply total ignorance because representative agents (or representative groups of agents with limited heterogeneity) featuring objective utility functions populate the literature. At a second glance, however, it becomes obvious that “methodological individualism” prevails and even dominates. To understand this dominance one only has to once again note […]

Tags