Policy implications of the Lucas Critique empirically tested along the global financial crisis

Karimova, Amira; Şimşek, Esra; Orhan, Mehmet

doi:10.1016/j.jpolmod.2019.06.003

Cited by 2 publications

(1 citation statement)

References 63 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…By calibrating their model to capture historical shifts in the US monetary policy rule, the authors found some empirical relevance for the Lucas Critique. Karimova, Simsek and Orhan (2020) used the global financial crisis to empirically test the Lucas Critique for US data (from 1990 to 2015). The authors built a conditional money demand model and found support for the Lucas Critique.…”

Section: The Lucas Critique: Some Empirical Resultsmentioning

confidence: 99%

Using a consumption function to explain the Lucas Critique to undergraduate students

Silva

Gomes²

2022

ECON

View full text Add to dashboard Cite

PurposeThe purpose of this paper is to contribute to the teaching of undergraduate macroeconomics.Design/methodology/approachTo suggest a roadmap, based on a consumption function, to be used by instructors willing to teach the Lucas Critique subject.FindingsTherefore, this paper proposes a lesson, which consists of three parts, to help undergraduates better understand the subject: (1) a grading exercise to bring the topic closer to students’ lives; (2) a Keynesian and an optimal consumption function, followed by an example based on an unemployment insurance policy; and (3) two optional topics consisting of extensions of the optimal consumption function and some empirical results related to the Lucas Critique.Originality/valueThe Lucas Critique influenced the evolution of research in macroeconomics, but it is not easily grasped in a classroom.

show abstract

Section: The Lucas Critique: Some Empirical Resultsmentioning

confidence: 99%