Macroeconomics and Reality (Sims)

Macroeconomics and reality by Christopher A. Sims published by Econometrica Volume 48 – January, 1980. Existing strategies for econometric analysis related to macroeconomics are subjects to number of serious objections, some recently formulated, some old. These objections are summarized in this paper, and it is argued that taken together they make it unlikely that macroeconomic models are in fact over identified, as the existing statistical theory usually assumes. Juan Pablo Jimenez indicated the Chris Sims’s Page –