The ordinary business of macroeconometric modeling: working on the Fed-MIT-Penn model, 1964-74

Using the FMP model as an example, this article examines the practices of macroeconometric modelers around 1970. It is argued that, for all the criticism such methods have received, they represented conscious choices made because modelers had objectives and criteria that were different from those of later critics. For example, where critics saw a lack of theoretical consistency, modelers saw and valued flexibility.

• View at Publisher