MACROECONOMICS AND REALITY

@article{Sims1980MACROECONOMICSAR,
  title={MACROECONOMICS AND REALITY},
  author={Christopher A. Sims},
  journal={Econometrica},
  year={1980},
  volume={48},
  pages={1-48}
}
  • C. Sims
  • Published 1980
  • Economics
  • Econometrica
Existing strategies for econometric analysis related to macroeconomics are subject to a 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. The implications of this conclusion are explored, and an example of econometric work in a non-standard style, taking account of the… 
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