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Specifying the Testing Output and Pricing Structures of Alternative Macroeconomic Models

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  • Paloni, Alberto

Abstract

This paper puts forward a framework for choosing between alternative macroeconomic models. It is shown that a three-sector model with importables, exportables, and nontraded goods can be specified so as to encompass both the Keynesian one-sector imperfect substitutes model and the two-sector dependent economy model with traded and nontraded goods as special cases. A two-stage test procedure is suggested in order to let the data determine which of these alternative models is most appropriate. The use of this procedure is illustrated for the case of Argentina, Brazil, and Mexico. Copyright 1996 by Blackwell Publishing Ltd

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  • Paloni, Alberto, 1996. "Specifying the Testing Output and Pricing Structures of Alternative Macroeconomic Models," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 58(2), pages 307-316, May.
    • Handle: RePEc:bla:obuest:v:58:y:1996:i:2:p:307-16
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