Summary:
This article is an appendix to my earlier articles on dynamic stochastic general equilibrium (DSGE) model accounting (here and here). The problem with my understanding of DSGE appears to be that I assumed that the DSGE modellers were using mathematical notation in a standard fashion. I now realise that the secret sauce to DSGE modelling is a blatant disregard to mathematical notation. I had pointed out that I was missing something; my assumption that there were some super important theorems from microeconomics that everyone was invoking, but not formally specifying. Instead, the answer is much simpler: the notation used was misleading, if not outright incorrect.(I have been hit with a number of projects recently -- including a MMT presentation at Concordia University last night. As a
Topics:
Mike Norman considers the following as important: DSGE modeling, formalization, mathematical notation
This could be interesting, too:
This article is an appendix to my earlier articles on dynamic stochastic general equilibrium (DSGE) model accounting (here and here). The problem with my understanding of DSGE appears to be that I assumed that the DSGE modellers were using mathematical notation in a standard fashion. I now realise that the secret sauce to DSGE modelling is a blatant disregard to mathematical notation. I had pointed out that I was missing something; my assumption that there were some super important theorems from microeconomics that everyone was invoking, but not formally specifying. Instead, the answer is much simpler: the notation used was misleading, if not outright incorrect.(I have been hit with a number of projects recently -- including a MMT presentation at Concordia University last night. As a
Topics:
Mike Norman considers the following as important: DSGE modeling, formalization, mathematical notation
This could be interesting, too:
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This article is an appendix to my earlier articles on dynamic stochastic general equilibrium (DSGE) model accounting (here and here). The problem with my understanding of DSGE appears to be that I assumed that the DSGE modellers were using mathematical notation in a standard fashion. I now realise that the secret sauce to DSGE modelling is a blatant disregard to mathematical notation. I had pointed out that I was missing something; my assumption that there were some super important theorems from microeconomics that everyone was invoking, but not formally specifying. Instead, the answer is much simpler: the notation used was misleading, if not outright incorrect.Bond Economics
(I have been hit with a number of projects recently -- including a MMT presentation at Concordia University last night. As a result, this article is relatively brief and tentative. I will return to a more meatier conclusions when I discuss the treatment of the governmental sector. Note that my earlier articles hinted at what I discuss here, but I had not gone to far in formalising this. The formalisation is a key step; if the notation is wrong, the only way to deal with the problem is to fix the notation.)…
The Curious Notation Of DSGE Models
Brian Romanchuk