TY  - JOUR
AU  - Taylor,John B.
TI  - New Econometric Techniques for Marcoeconomic Policy Evaluation
JF  - National Bureau of Economic Research Technical Working Paper Series
VL  - No. 42
PY  - 1984
Y2  - November 1984
UR  - http://www.nber.org/papers/t0042
L1  - http://www.nber.org/papers/t0042.pdf
N1  - Author contact info:
John B. Taylor
Herbert Hoover Memorial Building
Stanford University
Stanford, CA 94305-6010
Tel: 650/723-9677
Fax: 650-723-1687
E-Mail: John.Taylor@stanford.edu
AB  - This paper is an expository review of recently developed techniques that are designed to evaluate macroeconomic policy using econometric models ; The exposition focuses on dynamic stochastic models with rational expectations and with discrete time. The method of undetermined coefficients is used to calculate the effects of anticipated, unanticipated, permanent, and temporary policy shocks; the same method is also used to calculate the effect of alternative policy rules on the stochastic equilibrium. This method provides a convenient unifying framework for comparing alternative solution methods for models with rational expectations. Estimation, testing and identification techniques are reviewed as well as recent methods for solving large nonlinear models.
ER  -