TY  - JOUR
AU  - Fair,Ray C.
TI  - The Cowles Commission Approach, Real Business Cycle Theories, and New Keynesian Economics
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 3990
PY  - 1992
Y2  - February 1992
UR  - http://www.nber.org/papers/w3990
L1  - http://www.nber.org/papers/w3990.pdf
N1  - Author contact info:
Ray C. Fair
Cowles Foundation
P.O. Box 208281
Yale University
New Haven, CT  06520-8281
E-Mail: ray.fair@yale.edu
AB  - The Cowles Commission approach is reviewed and compared to the approaches of real business cycle (RBC) theorists and new Keynesian economists. It is argued that RBC models are not tested in a serious enough way and that the new Keynesian literature is not empirical enough for testing even to be a serious possibility. Macroeconomics seems to be moving away from its traditional empirical basis, which is sad. This paper argues for returning to the path that was abandoned by most macroeconomists around 1970, namely the specification and testing of structural macroeconometric models.
ER  -