Ragnar Frisch's business cycle approach: The genesis of the propagation and impulse model∗

Bjerkholt, Olav

doi:10.1080/09672560701570351

Cited by 15 publications

(13 citation statements)

References 20 publications

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“…83-90) has given one of the most thorough discussions of Frisch's work in time series analysis. See also Bjerkholt (2007) for a review of the publications and communications of Frisch during this period. Boianovsky and Trautwein (2007) also discussed the competing views of Frisch and Åkerman on the decomposition of statistical time series.…”

Section: Harmonic Decomposition and Investment Fluctuationsmentioning

confidence: 99%

“…Olav Bjerkholt (2007) lists many of the influences of Frisch during the end of the 1920s and early 1930s. On Frisch himself, particularly during the interwar period, see the works of Jens C. Andvig (1981); Bjerkholt (1995); Bjerkholt and Dupont-Kieffer (2010). Dupont-Kieffer (2003) showed in particular in her thesis the opposition of approaches between Frisch and Wesley C. Mitchell.…”

Section: Introductionmentioning

confidence: 99%

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Fluctuations and Growth in Ragnar Frisch’s Rocking Horse Model

Carret

2022

J Hist Econ Thought

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Ragnar Frisch’s famous “rocking horse” model has been the object of much praise and even controversy since its publication in 1933. This paper offers a new simulation of the model to show that there exist cyclical trajectories in the propagation mechanism. By building an analytical solution taking the same form as Frisch’s original solution, we can provide new insights into the ideas encapsulated in his model, in particular the fact that the author constructed a model combining cycles and growth. The exploration of Frisch’s formal construction of the model leads us to link his statistical work on the decomposition of time series with his economic insights on investment cycles, which both led to the 1933 model. We contrast Frisch’s approach to that of other econometricians who used similar equations, showing that their different mathematical solutions were the product of what they wanted to show with their models.

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Section: Harmonic Decomposition and Investment Fluctuationsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Fluctuations and Growth in Ragnar Frisch’s Rocking Horse Model

Carret

2022

J Hist Econ Thought

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“…members (Bjerkholt, 2017). One characteristic of this theoretical agenda is to let aside the fundamental issue of the foundations of utility, assuming that a utility function (in the ordinal meaning of the term) does exist and that individuals' behavior on markets derive from its maximization.…”

Section: Reception and Importance Of The 1915 Articlementioning

confidence: 99%

Eugen (Evgeny Evgenievich) Slutsky

Lenfant

2022

Springer Studies in the History of Economic Thought

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Eugen Slutsky is well-known to any graduate student in economics for two landmark articles and two operational concepts bearing his name, one in the field of consumer and utility theory ("the Slutsky equation"), the other in the field of the theory of cycles, introducing autonomous and exogenous causes in the analysis of macroeconomic fluctuations ("the Slutsky-Yule effect"). Because of the historical and political circumstances he had to confront in Ukraine, and then in Russia and in the U.S.S.R. in the first half of 20th century, Slutsky was prevented from devoting himself fully to mathematical economics, and he only published a handful more of articles dealing with economics. Over the last twenty years, researchers in Europe, Ukraine and Russia have been involved in making his contributions to mathematics and economics better known. By now, we get a clearer picture of Slutsky's views on economics and we know his network of connections with Western scholars who contributed to draw attention to his work. This essay highlights Slutsky's lasting importance in economics, focusing on the fate of his major and lesser known works.

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“…Dupont-Kieffer and Bjerkholt examined among other things the origin of his micro-macro divide (2010: 46 ff.). Bjerkholt (2007) gave a thorough account of the construction of his 1933 model, while our recent work (Carret, 2021) explored some overlooked issues in his analytic solution. Kalecki's role in anticipating the "Keynesian revolution" of the late 1930s has been the subject of heated debates since Patinkin (1984).…”

Section: Introductionmentioning

confidence: 99%

Rupture and continuity in the original divide between microdynamics and macrodynamics

Carret

2022

The European Journal of the History of Economic Thought

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In 1933, Ragnar Frisch introduced a distinction between micro-dynamics and macro-dynamics in his paper on "Propagation problems and impulse problems in dynamic economics." His claim that he proposed the first macro-dynamic analysis and that micro-dynamic schemes were limited to the dynamics of specific markets or behaviors had a lasting impact on the field. But the introduction of this separation created a narrative hiding what had been done before and introduced a tension between the two approaches. By going back to the content of micro-dynamic analysis, we are led to two lines of research that were pursued during the 1920s and early 1930s: cobweb models and intertemporal optimization. A pivotal economist for going beyond micro-dynamics was Jan Tinbergen, who had contributed to both these approaches, and went beyond with new analytical tools. However, the idea of intertemporal optimization met with some opposition when it was scaled up to the whole economic system. This prompted Frisch to propose his new approach, which met with immediate success as more schemes were proposed. Tinbergen was himself one of the first converts to macro-dynamics, but the links between the two approaches and the new tensions created by their separation remained. This tension between the newly created categories can be viewed as a result of opposing views on causality, which were rooted in differing mathematical approaches, a point explicitly made by the next generation.

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Ragnar Frisch's business cycle approach: The genesis of the propagation and impulse model∗

Cited by 15 publications

References 20 publications

Fluctuations and Growth in Ragnar Frisch’s Rocking Horse Model

Fluctuations and Growth in Ragnar Frisch’s Rocking Horse Model

Eugen (Evgeny Evgenievich) Slutsky

Rupture and continuity in the original divide between microdynamics and macrodynamics

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