DSGE Critiques PP

Hello class,

Today Christian and I are presenting the critiques of DSGE models, mainly post 2008 global financial crisis! I have attached a link to view the presentation below if you would like to review it and develop questions beforehand. The predominent economists who provided discourse on the topic include Robert Solow, Anton Korinek, Noah Smith, Roger Farmer, Camilo Tovar, Paul Romer, and Paul Krugman.

The critiques that stood out to us include:

  • Failing the “Market Test”
  • Unrealistic Assumptions and Parameters
  • Lack of Financial Sector
  • Determination of Causality/Correlation
  • Aggregated Microeconomics

The both of will expand on these point more so in class. We encourage you all to ask questions and provide feedback. Several of the critiques will have overlapping ideas but we will provide context in class today on why we decided to put them into separate categories.


Update: Critiques of DSGE Models

Hello class, Christian and I are writing our portion of the paper on the critiques of DSGE models. We have chosen the most prominent critiques and have looked at the points of discourse from well-known economists, such as Robert Solow, Anton Korinek, Noah Smith, Roger Farmer, Camilo Tovar, and Paul Krugman.

The structure of the paper will be introducing the critiques and then expand on what economists/academics have elaborated on them.

If you all have come across interesting and/or notable critiques from your own research please email me at tzotos@mail.umw.edu or Christian at cpotter@mail.umw.edu. We both would appreciate any input you all would have to offer!