Gilles St. Paul
Universite de Toulouse 1
21, Allee de Brienne
Tel: 00 33 5 61 12 85 44
Information about this author at RePEc
NBER Working Papers and Publications
|September 2011||Toward a Political Economy of Macroeconomic Thinking|
This paper investigates, in a simplified macro context, the joint determination of the (incorrect) perceived model and the equilibrium. I assume that the model is designed by a self-interested economist who knows the true structural model, but reports a distorted one so as to influence outcomes. This model influences both the people and the government; the latter tries to stabilize an unobserved demand shock and will make different inferences about that shock depending on the model it uses. The model's choice is constrained by a set of autocoherence conditions that state that, in equilibrium, if everybody uses the model then it must correctly predict the moments of the observables. I then study, in particular, how the models devised by the economists vary depending on whether they are "pro...
Published: Gilles Saint-Paul, 2012. "Toward a Political Economy of Macroeconomic Thinking," NBER International Seminar on Macroeconomics, University of Chicago Press, vol. 8(1), pages 249 - 284.
|August 2011||Toward a Political Economy of Macroeconomic Thinking|
in NBER International Seminar on Macroeconomics 2011, Jeffrey Frankel and Christopher Pissarides, organizers
|January 1993||On the Political Economy of Labor Market Flexibility|
in NBER Macroeconomics Annual 1993, Volume 8, Olivier Jean Blanchard and Stanley Fischer, editors