ellauri096.html on line 647: Dynamic stochastic general equilibrium modeling is a method in macroeconomics that attempts to explain economic phenomena, such as economic growth and business cycles, and the effects of economic policy, through econometric models based on applied general equilibrium theory and microeconomic principles.
ellauri096.html on line 672: Given that the structure of an econometric model consists of optimal decision-rules of economic agents, and that optimal decision-rules vary systematically with changes in the structure of series relevant to the decision maker, it follows that any change in policy will systematically alter the structure of econometric models.[9]
ellauri096.html on line 679: In the 1980s, macro models emerged that attempted to directly respond to Lucas through the use of rational expectations econometrics.
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