Analyses in Macroeconomic Modelling

1. Front Matter

   Pages i-vii

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2. Solution Methods

   1. Front Matter

      Pages 1-1

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   2. Solution Methods and Non-Linear Forward-Looking Models

      • Michel Juillard, Douglas Laxton, Peter McAdam, Hope Pioro

      Pages 3-29

   3. From Here to Eternity: the Robustness of Model Solutions to Imperfect Starting Values

      • Peter McAdam, Andrew Hughes Hallett

      Pages 31-55

   4. Accelerating Non Linear Perfect Foresight Model Solution by Exploiting the Steady State Linearization

      • Gary S. Anderson

      Pages 57-85

3. Rational Expectations and Learning

   1. Front Matter

      Pages 87-87

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   2. Modifying the Rational Expectations Assumption in a Large World Model

      • Stephen Hall, Steven Symansky

      Pages 89-113

   3. Boundedly Versus Procedurally Rational Expectations

      • Scott Moss, Esther-Mirjam Sent

      Pages 115-145

   4. Instrument Rules, Inflation Forecast Rules and Optimal Control Rules When Expectations are Rational

      • Sean Holly, Paul Turner

      Pages 147-165

4. Macrodynamics

   1. Front Matter

      Pages 167-167

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   2. Asymptotic Hierarchies in an Economic Model

      • Cuong Le Van, Pierre Malgrange

      Pages 169-177

   3. Computational Methods for Macro Policy Analysis: Hall and Taylor’s Model in Duali

      • P. Ruben Mercado, David A. Kendrick

      Pages 179-206

   4. The Dynamic Analysis of Forward-Looking Models

      • Michel Juillard

      Pages 207-224

5. Long Run and Closures in Macro Models

   1. Front Matter

      Pages 225-225

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   2. The Long Run in Macro-Economic Models: A Guide

      • Peter McAdam

      Pages 227-250

   3. The Sensitivity of Solutions to Terminal Conditions: Simulating Permanent Shocks with Quest II

      • Werner Roeger, Jan in’t Veld

      Pages 251-272

   4. Solving Large Scale Models Under Alternative Policy Closures: The MSG2 Multi-Country Model

      • Warwick J. McKibbin

      Pages 273-291

6. Back Matter

   Pages 293-299

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Macroeconomic Modelling has undergone radical changes in the last few years. There has been considerable innovation in developing robust solution techniques for the new breed of increasingly complex models. Similarly there has been a growing consensus on their long run and dynamic properties, as well as much development on existing themes such as modelling expectations and policy rules. This edited volume focuses on those areas which have undergone the most significant and imaginative developments and brings together the very best of modelling practice.
We include specific sections on (I) Solving Large Macroeconomic Models, (II) Rational Expectations and Learning Approaches, (III) Macro Dynamics, and (IV) Long Run and Closures. All of the contributions offer new research whilst putting their developments firmly in context and as such will influence much future research in the area. It will be an invaluable text for those in policy institutions as well as academics and advanced students in the fields of economics, mathematics, business and government. Our contributors include those working in central banks, the IMF, European Commission and established academics.

• Inflation
• calculus
• dynamics
• economics
• mathematics
• modeling

• University of Strathclyde, Scotland

  Andrew Hughes Hallett

• University of Kent at Canterbury, UK

  Peter McAdam

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