Business Cycle (Sargent & Sims)

Business cycle modeling without pretending to have too much a priori economic theory by Thomas J. Sargent and Christopher A. Sims. This paper illustrares the application of a certain class of time series model macroeconomics. One motivation for this application is our suspicion that existing large-scale macroeconometric models represent to an extent not admitted in the statistical theory applied to them, “measurement without theory”.