Nothing Special   »   [go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/113584.html
   My bibliography  Save this paper

Diagnosing unemployment: the dual project of the ENSAE's band

Author

Listed:
  • Plassard, Romain
Abstract
Throughout the 1980s and 1990s, there was a continuing effort to specify and estimate general equilibrium models with rationing (GEMR). However, this applied work has never been studied in a historical perspective. My article contributes to fill this gap. The focus is on the research led by French statisticians/econometricians including Patrick Artus, Sanvi Avouyi-Dovi, Christian Gourieroux, Jean-Jacques Laffont, Guy Laroque, and Alain Monfort. I show that there were two different motivations behind their work on GEMR: to inform economic policy and to advance data analytics. I explain the conditions under which each project emerged, account for their development, and discuss their scope. It follows a fresh perspective on the history of the microfoundations of macroeconomics.

Suggested Citation

  • Plassard, Romain, 2022. "Diagnosing unemployment: the dual project of the ENSAE's band," MPRA Paper 113584, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:113584
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/113584/1/MPRA_paper_113584.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Artus, Patrick & Laroque, Guy & Michel, Gilles, 1984. "Estimation of a Quarterly Macroeconomic Model with Quantity Rationing," Econometrica, Econometric Society, vol. 52(6), pages 1387-1414, November.
    2. repec:bla:econom:v:53:y:1986:i:210(s):p:s219-44 is not listed on IDEAS
    3. John Muellbauer & David Winter, 1981. "Unemployment, Employment and Exports in British Manufacturing: A Non-clearing Markets Approach," NBER Chapters, in: International Seminar on Macroeconomics 1979, pages 383-409, National Bureau of Economic Research, Inc.
    4. Backhouse,Roger E. & Boianovsky,Mauro, 2014. "Transforming Modern Macroeconomics," Cambridge Books, Cambridge University Press, number 9781107435384, September.
    5. Roozbei Hosseini & Karen Kopecky & Kai Zhao, 2022. "The Evolution of Health over the Life Cycle," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 45, pages 237-263, July.
    6. de Leeuw, Frank & Gramlich, Edward M, 1969. "The Channels of Monetary Policy: A Further Report on the Federal Reserve-M.I.T. Model," Journal of Finance, American Finance Association, vol. 24(2), pages 265-290, May.
    7. repec:bla:econom:v:50:y:1983:i:199:p:221-33 is not listed on IDEAS
    8. Roger E. Backhouse & Jeff Biddle, 2000. "The Concept of Applied Economics: A History of Ambiguity and Multiple Meanings," History of Political Economy, Duke University Press, vol. 32(5), pages 1-24, Supplemen.
    9. Kooiman, P. & Kloek, T., 1985. "An empirical two market disequilibrium model for Dutch manufacturing," European Economic Review, Elsevier, vol. 29(3), pages 323-354.
    10. Castex, Gonzalo & (Stanley) Cho, Sang-Wook & Dechter, Evgenia, 2022. "The decline in capital-skill complementarity," Journal of Economic Dynamics and Control, Elsevier, vol. 138(C).
    11. De Vroey,Michel, 2016. "A History of Macroeconomics from Keynes to Lucas and Beyond," Cambridge Books, Cambridge University Press, number 9781107584945.
    12. Barro, Robert J & Grossman, Herschel I, 1971. "A General Disequilibrium Model of Income and Employment," American Economic Review, American Economic Association, vol. 61(1), pages 82-93, March.
    13. Howard, David H, 1976. "The Disequilibrium Model in a Controlled Economy: An Empirical Test of the Barro-Grossman Model," American Economic Review, American Economic Association, vol. 66(5), pages 871-879, December.
    14. Laroque, Guy & Salanie, Bernard, 1989. "Estimation of Multi-market Fix-Price Models: An Application of Pseudo Maximum Likelihood Methods," Econometrica, Econometric Society, vol. 57(4), pages 831-860, July.
    15. repec:bla:scandj:v:79:y:1977:i:2:p:169-86 is not listed on IDEAS
    16. Laroque, Guy, 1986. "Le chômage des années 1970 était-il classique?," L'Actualité Economique, Société Canadienne de Science Economique, vol. 62(3), pages 349-364, septembre.
    17. Tucker, Donald P, 1971. "Macroeconomic Models and the Demand for Money under Market Disequilibrium," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 3(1), pages 57-83, February.
    18. Richard Portes & David Winter, 1980. "Disequilibrium Estimates for Consumption Goods Markets in Centrally Planned Economies," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 47(1), pages 137-159.
    19. Gourieroux, C & Laffont, J-J & Monfort, A, 1980. "Disequilibrium Econometrics in Simultaneous Equations Systems," Econometrica, Econometric Society, vol. 48(1), pages 75-96, January.
    20. GINSBURGH, Victor & TISHLER, Asher & ZANG, Israel, 1980. "Alternative estimation methods for two-regime models," LIDAM Reprints CORE 393, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    21. Sneessens, H. R., 1983. "A macroeconomic rationing model of the belgian economy," European Economic Review, Elsevier, vol. 20(1-3), pages 193-215, January.
    22. Sneessens, H. & Dreze, J., 1985. "A discussion of Belgian unemployment, combining traditional concepts and disequilibrium econometrics," LIDAM Discussion Papers CORE 1985040, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    23. Ito, Takatoshi, 1980. "Methods of Estimation for Multi-Market Disequilibrium Models," Econometrica, Econometric Society, vol. 48(1), pages 97-125, January.
    24. Sneessens, H. R., 1984. "Rationing macroeconomics : A Graphical Exposition," European Economic Review, Elsevier, vol. 26(1-2), pages 187-201.
    25. Roozbei Hosseini & Karen Kopecky & Kai Zhao, 2022. "The Evolution of Health over the Life Cycle," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 45, pages 237-263, July.
    26. Roger Backhouse & Béatrice Cherrier, 2019. "The Ordinary Business of Macroeconometric Modeling: Working on the Fed-MIT-Penn Model, 1964–74," Post-Print halshs-02725159, HAL.
    27. Juan Acosta & Goulven Rubin, 2019. "Bank Behavior in Large-Scale Macroeconometric Models of the 1960s," Post-Print hal-02651887, HAL.
    28. Laroque, G., 1986. "La Chomage des Annees 1970 Est-Il Classique?," Cahiers de recherche 8639, Universite de Montreal, Departement de sciences economiques.
    29. Goldfelfd, Stephen M. & Quandt, Richard E., 1975. "Estimation in a disequilibrium model and the value of information," Journal of Econometrics, Elsevier, vol. 3(4), pages 325-348, November.
    30. Portes, Richard & Winter, David, 1978. "The Demand for Money and for Consumption Goods in Centrally Planned Economies," The Review of Economics and Statistics, MIT Press, vol. 60(1), pages 8-18, February.
    31. Ginsburgh, Victor & Tishler, Asher & Zang, Israel, 1980. "Alternative estimation methods for two-regime models : A mathematical programming approach," European Economic Review, Elsevier, vol. 13(2), pages 207-228, March.
    32. Donald P. Tucker, 1968. "Credit Rationing, Interest Rate Lags, and Monetary Policy Speed," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 82(1), pages 54-84.
    33. Artus, Patrick & Avouyi-Dovi, Sanvi & Laffargue, Jean-Pierre, 1993. "A disequilibrium econometric model of the French economy with two sectors and endogenous prices and investment," Economic Modelling, Elsevier, vol. 10(1), pages 2-10, January.
    34. Ginsburgh, Victor & Tishler, Asher & Zang, Israel, 1980. "Alternative estimation methods for two-regime models : A mathematical programming approach," European Economic Review, Elsevier, vol. 13(2), pages 207-228, March.
    35. Fair, Ray C & Jaffee, Dwight M, 1972. "Methods of Estimation for Markets in Disequilibrium," Econometrica, Econometric Society, vol. 40(3), pages 497-514, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Plassard, Romain & Renault, Matthieu, 2023. "General equilibrium models with rationing: The making of a ‘European specialty’," European Economic Review, Elsevier, vol. 159(C).
    2. Kooiman, Peter & Van Dijk, Herman K. & Thurik, A. Roy, 1985. "Likelihood diagnostics and Bayesian analysis of a micro-economic disequilibrium model for retail services," Journal of Econometrics, Elsevier, vol. 29(1-2), pages 121-148.
    3. Dominique Bureau & Didier Miqueu & Michel Norotte, 1984. "La maquette Désir," Économie et Prévision, Programme National Persée, vol. 65(4), pages 45-63.
    4. Laroque, Guy, 1986. "Le chômage des années 1970 était-il classique?," L'Actualité Economique, Société Canadienne de Science Economique, vol. 62(3), pages 349-364, septembre.
    5. Ogawa, Shogo, 2022. "Survey of non-Walrasian disequilibrium economic theory," MPRA Paper 115011, University Library of Munich, Germany.
    6. Antoine Mandel & Vipin Veetil, 2020. "The Economic Cost of COVID Lockdowns: An Out-of-Equilibrium Analysis," Economics of Disasters and Climate Change, Springer, vol. 4(3), pages 431-451, October.
    7. Uctum, Remzi, 2007. "Économétrie des modèles à changement de régimes : un essai de synthèse," L'Actualité Economique, Société Canadienne de Science Economique, vol. 83(4), pages 447-482, décembre.
    8. Richard Portes, 1986. "The Theory and Measurement of Macroeconomic Disequilibrium in Centrally Planned Economies," NBER Working Papers 1875, National Bureau of Economic Research, Inc.
    9. Eromenko, Igor & Lisenkova, Katerina, 2006. "Impact of joining the WTO on Ukrainian ferrous metallurgy: subsidies vs. antidumping, is there really a trade-off?," MPRA Paper 67477, University Library of Munich, Germany.
    10. Plassard, Romain, 2021. "Barro, Grossman, and the domination of equilibrium macroeconomics," MPRA Paper 107201, University Library of Munich, Germany.
    11. Karmelavičius, Jaunius & Mikaliūnaitė-Jouvanceau, Ieva & Petrokaitė, Austėja Petrokaitė, 2022. "Housing and credit misalignments in a two-market disequilibrium framework," ESRB Working Paper Series 135, European Systemic Risk Board.
    12. Acosta, Juan & Assistant, JHET, 2021. "Book Review of 'Banks and Finance in Modern Macroeconomics' by Claudio Sardoni and Bruna Ingrao," OSF Preprints kfxhy, Center for Open Science.
    13. Sneessens, Henri R., 1992. "Contraintes de débouchés, capacités de production et chômage dans un modèle macroéconomique avec concurrence imparfaite," L'Actualité Economique, Société Canadienne de Science Economique, vol. 68(1), pages 140-174, mars et j.
    14. Aurélien Goutsmedt & Matthieu Renault & Francesco Sergi, 2021. "European Economics and the Early Years of the International Seminar on Macroeconomics," Revue d'économie politique, Dalloz, vol. 131(4), pages 693-722.
    15. Kaddour Hadri, 1997. "A frontier approach to disequilibrium models," Applied Economics Letters, Taylor & Francis Journals, vol. 4(11), pages 699-701.
    16. Goutsmedt, Aurélien & Truc, Alexandre, 2023. "An independent European macroeconomics? A history of European macroeconomics through the lens of the European Economic Review," European Economic Review, Elsevier, vol. 158(C).
    17. Holmberg, Ulf, 2012. "Error Corrected Disequilibrium," Umeå Economic Studies 837, Umeå University, Department of Economics.
    18. Lee, Lung-Fei, 1997. "A smooth likelihood simulator for dynamic disequilibrium models," Journal of Econometrics, Elsevier, vol. 78(2), pages 257-294, June.
    19. Salima Hamouche, 1993. "Contribution à l'étude du déséquilibre sur le marché algérien des biens de consommation," Économie et Prévision, Programme National Persée, vol. 108(2), pages 63-74.
    20. Jerry R. Green & Jean-Jacques Laffont, 1980. "Disequilibrium Dynamics with Inventories and Anticipatory Price-Setting:Some Impirical Results," NBER Working Papers 0453, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    Disequilibrium macroeconomics; Estimation; Unemployment; Economic Policy; ENSAE.;
    All these keywords.

    JEL classification:

    • B21 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Microeconomics
    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
    • B23 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Econometrics; Quantitative and Mathematical Studies
    • E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:113584. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.