Quantitative economic policy and econometrics were developed along with macroeconomics in the 1930s. Econometric techniques and models are still being used extensively in the business of forecasting and policy advice. In particular, policy simulations with econometric models have become standard tools for evaluating and designing macroeconomic stabilization policies. For instance, such studies provided important arguments for the popularization of the recent steps towards European integration such as the European Single Market, the European Monetary Union, and the Enlargement of the European Union. In this book, some recent advances in the theory and applications of quantitative economic policy are presented, with particular emphasis on fiscal and monetary policies in a European and global context. Andrew Hughes Hallett, a pioneer and major scientist in quantitative economic policy analysis, is being honoured by this volume, whose contributors are among his friends and former students.
Quantitative Economic Policy - Theory and Applications: Introduction and Overview by Reinhard Neck and Christian Richter and Peter Mooslechner 1
Towards a New Theory of Economic Policy: Continuity and Innovation by Nicola Acocella and Giovanni Di Bartolomeo 15
If the Representative Agent is Used, Should He Be Believed? Aggregation, Welfare and the Role of Microfoundations in Quantitative Economic Policy by John Lewis 35
Time Consistency, Subgame Perfectness, Solution Concepts and Information Patterns in Dynamic Models of Stabilization Policies by Engelbert J. Dockner and Reinhard Neck 51
Models of Endogenous Coalition Formation Between Fiscal and Monetary Authorities in the Presence of a Monetary Union by Tomasz Michalak and Jacob Engwerda and Joseph Plasmans and Bas van Aarle and Giovanni Di Bartolomeo 103
Fiscal Federalism, Risk Sharing and the Persistence of Shocks by Scott Davis 137
Debating Fiscal Federalism in EMU: Plus ca change by Maria Demertzis 157
A Common Election Day for Euro-Zone Member States? by Fritz Breuss 185
Automatic Stabilisers and Budget Rules by Torben M. Andersen and Svend E. Hougaard Jensen 209
Domestic and International Determinants of the Bank of England's Liquidity Ratios during the Classical Gold Standard, 1876-1913: An Econometric Analysis by Giuseppe Tullio and Jurgen Wolters 221
On the Transmission Mechanism of Monetary Policy by Christian Richter 241
From the EMS to EMU: Has There Been Any Change in the Behaviour of Exchange Rate Correlation? by Xiao-Ming Li 261
Optimum Monetary Policy during Monetary Union Enlargement by Ali Sina Onder 275
When the Dollar Falls by Simon Wren-Lewis 293
Monetary Policy in a Small Open Economy with High Unemployment by Christopher Malikane and Willi Semmler 309
Uncertainties Surrounding Natural Rate Estimates in the G7 by Rod Cross and Julia Darby and Jonathan Ireland