The evolution of IS-LM models: empirical evidence and theoretical presuppositions

  title={The evolution of IS-LM models: empirical evidence and theoretical presuppositions},
  author={Alessandro Vercelli},
  journal={Journal of Economic Methodology},
  • A. Vercelli
  • Published 1 July 1999
  • Economics
  • Journal of Economic Methodology
This paper offers an explanation of the resilience of IS-LM models, which are still alive more than sixty years after the birth of the first prototype despite growing criticism within the profession. To this end two significant episodes of their evolution are examined in some detail: the genesis of the prototype of the 'first generation' of IS-LM models (Hicks 1937), and a recent example of what is here called the 'second generation' of IS-LM models (McCallum and Nelson 1997). The resilience of… 

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