Bringing macroeconomics into the lab

Abstract

This paper reviews experiments in macroeconomics, pointing out the theoretical justifications, the strengths and weaknesses of this approach. We identify two broad classes of experiments: general equilibrium and singleissue experiments, and emphasize the idea of theory testing that is behind these. A large number of macroeconomic issues have been analyzed in the laboratory spanning from monetary economics to fiscal policy, from international trade and finance, to growth and macroeconomic imperfections. In a large number of cases results give support to the theories tested. We also highlight that experimental macroeconomics has increased the number of tools available to experimentalists.

1. Macroeconomics: A Survey of Laboratory Research

“…Most of the literature surveyed here was published since 1995, the date of the first Handbook volume. In addition, this chapter builds on, complements and extends earlier surveys of the macroeconomic experimental literature by Duffy (1998Duffy ( , 2008Duffy ( , 2014, and Ricciuti (2008).…”

Laboratory Experiments for Economic Policy Making

“…We found experimental papers in basically all areas of economic policy making: industrial and regulatory policy, auction design and environmental policy. (Readers interested in macroeconomic policy experiments are referred to Ricciuti (2008). )…”

Experiments in macroeconomics: methods and applications

“…Driscoll and Holden (2014) analyze how experimentally identified biases have been included in macroeconomic theory. Ricciuti (2008) and Cornand and Heinemann (2014b) particularly emphasize the relevance for policy makers to resort to monetary macro-experiments. We instead focus on methodological issues, including recent advancements in the design of experiments and challenges for applications in macroeconomics.…”