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Micro Data and General Equilibrium Models

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Authors:
  • Browning, Martin ;
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    Økonomisk Institut, Department of Economics, Faculty of Social Sciences, Københavns Universitet
  • Hansen, Lars Peter ;
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    unknown
  • Heckman, James J.
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    unknown
Editor:
Taylor, John B., Woodford, Michael
DOI:
10.1016/S1574-0048(99)01011-3
Abstract:
Dynamic general equilibrium models are required to evaluate policies applied at the national level. To use these models to make quantitative forecasts requires knowledge of an extensive array of parameter values for the economy at large. This essay describes the parameters required for different economic models, assesses the discordance between the macromodels used in policy evaluation and the microeconomic models used to generate the empirical evidence. For concreteness, we focus on two general equilibrium models: the stochastic growth model extended to include some forms of heterogeneity and the overlapping generations model enriched to accommodate human capital formation
ISBN:
0444501568
Type:
Report chapter
Language:
English
Published in:
Handbook of Macroeconomics, 1999, p. 543-633
Main Research Area:
Social science
Publication Status:
Published
Review type:
Undetermined
Publisher:
Elsevier
Submission year:
1999
Scientific Level:
Scientific
ID:
248762243

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