Top-down versus bottom-up macroeconomics

CESifo Economic Studies

Volumn 56, Issue 4, 2010, Pages 465-497

  de Grauwe, Paul ^a  

^a Faculty of Agricultural and Applied Biological Sciences   (Belgium)

Author keywords

Animal spirits; DSGE model; Heuristics; Imperfect information

Indexed keywords

BOTTOM-UP APPROACH; COMPARATIVE STUDY; DEVELOPMENT THEORY; ECONOMIC THEORY; GENERAL EQUILIBRIUM ANALYSIS; HEURISTICS; MACROECONOMICS; NUMERICAL MODEL; THEORETICAL STUDY; TOP-DOWN APPROACH;

ANIMALIA;

EID: 78649581826     PISSN: 1610241X     EISSN: 16127501     Source Type: Journal    
DOI: 10.1093/cesifo/ifq014     Document Type: Article

References (53)

1. Adjemian, S., M. Darracq Pariès and S. Moyen (2007), "Optimal Monetary Policy in an Estimated DSGE-Model for the Euro Area", Working Paper, no. 803, European Central Bank.
2. Akerlof, G. and R. Shiller (2009), Animal Spirits. How Human Psychology Drives the Economy and Why It Matters for Global Capitalism, Princeton University Press, Princeton.
3. Anagnostopoulos, A., O. Licandro, I. Bove and K. Schlag (2007), "An Evolutionary Theory of Inflation Inertia", Journal of the European Economic Association 5, 433-443.
4. Anderson, S., A. de Palma and J.-F. Thisse (1992), Discrete Choice Theory of Product Differentiation, MIT Press, Cambridge, MA.
5. Anufriev, M., T. Assenza, C. Hommes and D. Massaro (2009), Interest Rate Rules and Macroeconomic Stability under Heterogeneous Expectations, CeNDEF, University of Amsterdam.
6. Binder, M. and M. H. Pesaran (1996), "Multivariate Rational Expectations Models and Macroeconomic Modeling: A Review and Some Results", in M. H. Pesaran and M. Wickens, eds. Handbook of Applied Econometrics: Macroeconomics, Blackwell, Oxford.
7. Branch, W. and G. Evans (2006), "Intrinsic Heterogeneity in Expectation Formation", Journal of Economic Theory 127, 264-295.
8. Branch, W. and G. Evans (2009), Monetary Policy with Heterogeneous Expectations, mimeo, Stanford University.
9. Brazier, A., R. Harrison, M. King and T. Yates (2006), "The Danger of Inflating Expectations of Macroeconomic Stability: Heuristic Switching in An Overlapping Generations Monetary Model", Working Paper no. 303, Bank of England, August.
10. Brock, W. and C. Hommes (1997), "A Rational Route to Randomness", Econometrica 65, 1059-1095.
11. Camerer, C., G. Loewenstein and D. Prelec (2005), "Neuroeconomics: How Neuroscience Can Inform Economics", Journal of Economic Literature 63, 9-64.
12. Chari, V., P. Kehoe and E. McGrattan (2009), "New Keynesian Models: Not yet Useful for Policy Analysis", American Economic Journal: Macroeconomics 1:1, 242-266.
13. Christiano, L., M. Eichenbaum and C. Evans (2001), "Nominal Rigidities and the Dynamic Effects of a Shock to Monetary Policy", NBER Working Paper, no. 8403, July.
14. Christiano, L., R. Motto and M. Rostagno (2007), "Shocks, Structures or Monetary Policies", Working Paper, no. 774, European Central Bank.
15. Clarida, R., J. Gali and M. Gertler (1999), "The Science of Monetary Policy, A New Keynesian Perspective", Journal of Economic Literature 37, 1661-1707.
16. Curtin, R. (2007), "Consumer Sentiment Surveys: Worldwide Review and Assessment", Journal of Business Cycle Measurement and Analysis, 1-37.
17. Dawkins, R. (2009), The Greatest Show on Earth. The Evidence for Evolution, Bantam Press, New York, p. 470.
18. De Grauwe, P. and M. Grimaldi (2006), The Exchange Rate in a Behavioural Finance Framework, Princeton University Press, Princeton.
19. Della Vigna, S. (2007), "Psychology and Economics: Evidence from the Field", NBER Working Paper, no. 13420.
20. Delli Gatti, D., C. Di Guilmi, E. Gaffeo, G. Giuloni, M. Gallegati and A. Palestrini (2005), "A New Approach to Business Fluctuations: Heterogenous Interacting Agents, Scaling Laws and Financial Fragility", Journal of Economic Behavior and Organization 56, 489-512.
21. Evans, G. and S. Honkapohja (2001), Learning and Expectations in Macroeconomics, Princeton University Press, Princeton.
22. Farmer, R. E. A. (2008), "Animal Spirits", in S. N. Durlauf and L. E. Blume, eds. The New Palgrave Dictionary of Economics, Palgrave Macmillan.
23. Galí, J., D. López-Salido and J. Vallés (2004), "Rule of Thumb Consumers and the Design of Interest Rate Rules", Journal of Money Credit and Banking 36, 739-764.
24. Galí, J. (2008), Monetary Policy, Inflation and the Business Cycle, Princeton University Press, Princeton.
25. Gaspar, V., F. Smets and D. Vestin (2006), "Adaptive Learning, Persistence and Optimal Monetary Policy", Working Paper Series, no. 644, European Central Bank.
26. Gigerenzer, G. and P. M. Todd (1999), Simple Heuristics That Make Us Smart, Oxford University Press, New York.
27. Goodhart, C. (2007), "The Continuing Muddles of Monetary Theory: A Steadfast Refusal to Face Facts" (mimeo), Financial Markets Group, London School of Economics.
28. Hayek, F. (1945), "The Use of Knowledge in Society", American Economic Review XXXV, 519-530.
29. Howitt, P. (2008), "Macroeconomics with Intelligent Autonomous Agents", in R. Farmer, ed. Macroeconomics in the Small and the Large: Essays on Microfoundations, Macroeconomic Applications and Economic History in Honor of Axel Leijonhufvud, Edward Elgar, Cheltenham.
30. Katona, G. (1951), Psychological Analysis of Economic Behavior, McGraw-Hill, New York.
31. Keynes, J. M. (1936), The General Theory of Employment, Interest and Money, MacMillan and Co.
32. Kirman, A. (1993), "Ants, Rationality and Recruitment", Quarterly Journal of Economics 108, 137-156.
33. LeBaron, B. and L. Tesfatsion (2008), "Modeling Macroeconomies as Open-Ended Dynamic Systems of Interacting Agents", American Economic Review (Papers & Proceedings) 98, 246-250.
34. Leijonhufvud, A. (1993), "Towards a Not-Too-Rational Macroeconomics", Southern Economic Journal 1.
35. Ludvigson, S. (2004), "Consumer Confidence and Consumer Spending", Journal of Economic Perspectives 18,2.
36. Mankiw, N. G. and R. Reis (2002), "Sticky Information versus Sticky Prices: A Proposal to Replace the New Keynesian Phillips Curve", Quarterly Journal of Economics 117, 1295-1328.
37. Mankiw, N. G. and R. Reis (2006), "Pervasive Stickiness", American Economic Review 96, 164-169.
38. Milani, F. (2007a), Learning and Time-Varying Macroeconomic Volatility, mimeo, University of California, Irvine.
39. Milani, F. (2007b), "Expectations, Learning and Macroeconomic Persistence", Journal of Monetary Economics 54, 2065-2082.
40. Nelson, E. (1998), "Sluggish Inflation and Optimizing Models of the Business Cycle", Journal of Monetary Economics 42, 303-322.
41. Orphanides, A. and J. Williams (2004), "Robust Monetary Policy with Imperfect Information", Board of Governors of the Federal Reserve System.
42. Sargent, T. (1993), Bounded Rationality in Macroeconomics, Oxford University Press, Oxford.
43. Sims, C. (2005), "Rational Inattention: A Research Agenda", Discussion Paper, no. 34/2005, Deutsche Bundesbank.
44. Smets, F. and R. Wouters (2003), "An Estimated Dynamic Stochastic General Equilibrium Model", Journal of the European Economic Association 1, 1123-1175.
45. Smets, F. and R. Wouters (2007), "Shocks and Frictions in Us Business Cycles", Working Paper, no. 722, European Central Bank.
46. Stanovich, K. and R. West (2000), "Individual Differences in Reasoning: Implications for the Rationality Debate", Behavioural and Brain Sciences 23, 645-665.
47. Svensson, L. (1997), "Inflation Forecast Targeting: Implementing and Monitoring Inflation Targets", European Economic Review 41, 111-146.
48. Tesfatsion, L. (2006), "Agent-Based Computational Economics: A Constructive Approach to Economic Theory", in L. Tesfatsion and K. L. Judd, eds. Handbook of Computational Economics, Vol. 2: Agent-Based Computational Economics, Handbooks in Economics Series, North-Holland/Elsevier, The Netherlands, pp. 831-880.
49. Thaler, R. (1994), Quasi Rational Economics, Russell Sage Foundation, New York.
50. Tversky, A. and D. Kahneman (1981), "The Framing of Decisions and the Psychology of Choice", Science 211, 453-458.
51. Walsh, C. (2003), Monetary Theory and Policy, MIT Press, Cambridge, MA.
52. Woodford, M. (2003), Interest and Prices: Foundations of a Theory of Monetary Policy, Princeton University Press, Princeton.
53. Woodford, M. (2009), "Convergence in Macroeconomics: Elements of the New Synthesis", American Economic Journal: Macroeconomics 1, 267-297.