R. Jeffery Green, Bert G. Hickman, E. Philip Howrey, Saul H. Hymans, and Michael R. Donihue
- Published in print:
- 1991
- Published Online:
- October 2011
- ISBN:
- 9780195057720
- eISBN:
- 9780199854967
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195057720.003.0004
- Subject:
- Economics and Finance, Econometrics
This chapter discusses the methodology of IS-LM and AD-AS system reduction and illustrates its application to three U.S. econometric models: the Hickman-Coen (HC) Annual Growth Model, the Indiana ...
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This chapter discusses the methodology of IS-LM and AD-AS system reduction and illustrates its application to three U.S. econometric models: the Hickman-Coen (HC) Annual Growth Model, the Indiana University Econometric Model (EMUS), and the University of Michigan's Quarterly Econometric Model (MQEM). Bert Hickman compares the estimation of the short-run IS, LM, and AS locuses by partial simulation techniques and full-model comparative-static experiments. In the next section, M.N. Green measures the short- and long-run elasticities of the IS, LM, AD, and AS locuses of the Indiana Model by partial simulation methods. In the third section, E. Philip Howrey, Saul Hymans, and Michael Donihue illustrate the use of IS-LM analysis to interpret macroeconometric model simulations in a detailed examination of the responses of the MQEM model to a fiscal shock over a ten-year horizon. The final section offers some concluding observations on the usefulness of the general approach.Less
This chapter discusses the methodology of IS-LM and AD-AS system reduction and illustrates its application to three U.S. econometric models: the Hickman-Coen (HC) Annual Growth Model, the Indiana University Econometric Model (EMUS), and the University of Michigan's Quarterly Econometric Model (MQEM). Bert Hickman compares the estimation of the short-run IS, LM, and AS locuses by partial simulation techniques and full-model comparative-static experiments. In the next section, M.N. Green measures the short- and long-run elasticities of the IS, LM, AD, and AS locuses of the Indiana Model by partial simulation methods. In the third section, E. Philip Howrey, Saul Hymans, and Michael Donihue illustrate the use of IS-LM analysis to interpret macroeconometric model simulations in a detailed examination of the responses of the MQEM model to a fiscal shock over a ten-year horizon. The final section offers some concluding observations on the usefulness of the general approach.
