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Why macroeconomics needs experimental evidence

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  • John Duffy

    (University of California Irvine)

Abstract

This paper discusses how macroeconomics can and already has begun to make use of controlled experimental methods to address the assumptions and predictions of macroeconomic models as well as to evaluate the impacts of macroeconomic policy interventions. Specific issues addressed include rational expectations and alternatives, intertemporal optimization with an application to household consumption and savings decisions and the efficacy of various monetary policies.

Suggested Citation

  • John Duffy, 2022. "Why macroeconomics needs experimental evidence," The Japanese Economic Review, Springer, vol. 73(1), pages 5-29, January.
    • Handle: RePEc:spr:jecrev:v:73:y:2022:i:1:d:10.1007_s42973-021-00090-y
    DOI: 10.1007/s42973-021-00090-y
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    More about this item

    Keywords

    Experimental economics; Macroeconomics; Rational expectations; Intertemporal optimization; Monetary policies;
    All these keywords.

    JEL classification:

    • B40 - Schools of Economic Thought and Methodology - - Economic Methodology - - - General
    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • E00 - Macroeconomics and Monetary Economics - - General - - - General
    • E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)
    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General

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