About this document

Understanding the Lucas Critique by Juan Manuel Cisneros García is a document available to read on EtoBox.

This document discusses the Lucas Critique, which argues that estimated relationships in macroeconomic models are not structural or "deep" because they do not account for how private agent behavior depends on anticipated government policy rules. The critique applies even if agents do not have fully rational expectations, as long as private behavior depends somewhat on perceived policy rules. The document uses an example framework to illustrate traditional econometric practice prior to the Lucas Critique, an

Author

Juan Manuel Cisneros García

Language

EN