The financial crisis and the systemic failure of the economics profession

Critical Review

Volumn 21, Issue 2-3, 2009, Pages 249-267

  Colander, David ^a   Goldberg, Michael ^b   Haas, Armin ^c   Juselius, Katarina ^d   Kirman, Alan ^e   Lux, Thomas ^f   Sloth, Brigitte ^g  

^a MIDDLEBURY COLLEGE   (United States)

^b UNIVERSITY OF NEW HAMPSHIRE   (United States)

^c Impact Research   (Germany)

^d UNIVERSITY OF COPENHAGEN   (Denmark)

^e Centre National de la Recherche Scientifique   (France)

^f UNIVERSITY OF KIEL   (Germany)

^g UNIVERSITY OF SOUTHERN DENMARK   (Denmark)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 68949092571     PISSN: 08913811     EISSN: None     Source Type: Journal    
DOI: 10.1080/08913810902934109     Document Type: Article

References (35)

1. Acharya, Viral V., and Philipp Schnabl. 2009. "How Banks Played the Leverage ' Game.' " In Restoring Financial Stability: How to Repair a Failed System, ed. Viral V. Acharya and Matthew Richardson. New York: Wiley.
2. Anderson, P. W. 1972. "More Is Different." Science 177: 393-96.
3. Aoki, Masanao, and Hiroshi Yoshikawa. 2007. Reconstructing Macroeconomics: A Perspective from Statistical Physics and Combinatorial Stochastic Processes. Cambridge: Cambridge University Press.
4. Bagehot, Walter. 1873. Lombard Street: A Description of the Money Market. London: Henry S. King.
5. Banerjee, Abhijit V. 1992. "A Simple Model of Herd Behaviour." Quarterly Journal of Economics 108: 797-817.
6. Chamley, Christophe P. 2002. Rational Herds: Economic Models of Social Learning. Cambridge: Cambridge University Press.
7. Coates, J. M., and J. Herbert. 2008. "Endogenous Steroids and Financial Risk Taking on a London Trading Floor." Proceedings of the National Academy of Sciences: 6167-72.
8. Cogley, Timothy W., and Thomas Sargent. 2008. "The Market Price of Risk and the Equity Premium: A Legacy of the Great Depression?" Journal of Monetary Economics 55: 454-76.
9. Colander, David. 2006. Post Walrasian Macroeconomics: Beyond the DSGE Model. Cambridge: Cambridge University Press.
10. Colander, David, Peter Howitt, Alan Kirman, Axel Leijonhufvud, and Perry Mehrling. 2008. "Beyond DSGE Models: Toward an Empirically Based Macroeconomics." American Economic Review 98 (May): 2.
11. Criado, R., J. Flores, B. Hernández-Bermejo, J. Pello, and M. Romance. 2005. "Effective Measurement of Network Vulnerability under Random and Intentional Attacks." Journal of Mathematical Modelling and Algorithms 4: 307-16.
12. Eichengreen, Barry. 2008. Origins and Responses to the Crisis. Manuscript, University of California, Berkeley.
13. Föllmer, Hans. 2008. "Financial Uncertainty, Risk Measures, and Robust Preferences." In Aspects of Mathematical Finance, ed. Marc Yor. Berlin: Springer.
14. Friedman, Jerome H. 1987. "Exploratory Projection Pursuit." Journal of the American Statistical Association 82: 249-66.
15. Frydman, Roman, and Michael D. Goldberg. 2007. Imperfect Knowledge Economics: Exchange Rates and Risk. Princeton: Princeton University Press.
16. Frydman, Roman, and Michael D. Goldberg. 2008. "Macroeconomic Theory for a World of Imperfect Knowledge." Capitalism and Society 3(1).
17. Hellwig, Martin. 2008. Systemic Risk in the Financial Sector: An Analysis of the Subprime- Mortgage Financial Crisis. MPI Collective Goods Preprint No. 2008/43.
18. Hendry, David F. 1995. Dynamic Econometrics. Oxford: Oxford University Press.
19. Hendry, David F. 2009. "The Methodology of Empirical Econometric Modeling: Applied Econometrics Through the Looking-Glass." In The Handbook of Empirical Econometrics. London: Palgrave.
20. Hendry, David F., and Hans-Martin Krolzig. 2005. "The Properties of Automatic Gets Modeling." Economic Journal 115(502): C32-61.
21. Hoover, Kevin D., Søren Johansen, and Katarina Juselius. 2008. "Allowing the Data to Speak Freely: The Macroeconometrics of the Cointegrated Vector Autoregression." American Economic Review 98: 251-55.
22. Juselius, Katarina. 2006. The Cointegrated VAR Model: Econometric Methodology and Empirical Applications. Oxford: Oxford University Press.
23. Juselius, Katarina, and Massimo Franchi. 2007. "Taking a DSGE Model to the Data Meaningfully." Economics: The Open-Access, Open-Assessment E-Journal 4.
24. Kindleberger, Charles P. 1989. Manias, Panics, and Crashes: A History of Financial Crises. London: Macmillan.
25. Krahnen, Jan Pieter. 2005. "Der Handel von Kreditrisiken: Eine neue Dimension des Kapitalmarktes." Perspektiven der Wirtschaftspolitik 6: 499-519.
26. Krahnen, Jan Pieter, and Christian Wilde. 2006. Risk Transfer with CDOs and Systemic Risk in Banking. Frankfurt Center for Financial Studies, Working Paper 2006-04.
27. Leijonhufvud, Axel. 2000. Macroeconomic Instability and Coordination: Selected Essays. Cheltenham: Edward Elgar.
28. Lo, Andrew W., Dmitry V. Repin, and Brett N. Steenbarger. 2005. "Fear and Greed in Financial Markets: A Clinical Study of Day-Traders." American Economic Review 95(2): 352-59.
29. Lux, Thomas. 2009. "Stochastic Behavioral Asset Pricing Models and the Stylized Facts." In Handbook of Financial Markets: Dynamics and Evolution, ed. Thorsten Hens and Klaus Schenk-Hoppé. Amsterdam: North-Holland.
30. Lux, Thomas, and Frank Westerhoff. 2009. "Economics Crisis." Nature Physics 5: 2-3.
31. Minsky, Hyman P. 1986. Stabilizing an Unstable Economy. New Haven: Yale University Press.
32. Rajan, Uday, Amit Seru, and Vikrant Vig. 2008. The Failure of Models that Predict Failure: Distance, Incentives and Defaults. University of Chicago Graduate School of Business, Research Paper No. 08-19.
33. Reinhart, Carmen M., and Kenneth S. Rogoff. 2008. This Time Is Different: A Panoramic View of Eight Centuries of Financial Crises. Manuscript, Harvard University and National Bureau of Economic Research.
34. Scheinkman, Jose A., and Michael Woodford. 1994. "Self-Organized Criticality and Economic Fluctuations." American Economic Review 84: 417-21.
35. Solow, Robert. 2008. "Reflections on the Survey." In David Colander, The Making of an Economist, Redux. Princeton: Princeton University Press.