The Wooden Horse That Wouldn’t Rock: Reconsidering Frisch

Zambelli, Stefano; Thalberg, Björn

doi:10.1007/978-1-349-12227-1_4

Cited by 17 publications

(4 citation statements)

References 15 publications

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“…This prevented him from seeing that the superposition of the cycles and the trend would not produce an apparent oscillation for the parameters he chose originally. This explains why Stefano Zambelli (1992, 2007), when he simulated the model with Frisch’s parameters, found a monotone return to equilibrium. This result is a consequence of the fact that, when started from the same initial conditions, the cycles have a very small amplitude and are dominated by the real exponential solution.…”

Section: Frisch’s Propagation Modelmentioning

confidence: 94%

Letter to the Editors: The Emperor Has No Clothes: A Reply to Ginoux and Jovanovic

Carret¹

2023

J Hist Econ Thought

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In this letter to the editors of the Journal of the History of Economic Thought, I present my results on Ragnar Frisch’s rocking horse model, published in an earlier issue of the same journal, and detail why the comments by Jean-Marc Ginoux and Franck Jovanovic on my paper have no grounding. I explain the role of initial conditions on the amplitude of cycles and trend in Frisch’s solution, and emphasize that my contribution was to show that Frisch built a model where cycles and growth came from the same economic mechanism.

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Section: Frisch’s Propagation Modelmentioning

confidence: 94%

Letter to the Editors: The Emperor Has No Clothes: A Reply to Ginoux and Jovanovic

Carret¹

2023

J Hist Econ Thought

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show abstract

“…This prevented him from seeing that the superposition of the cycles and the trend would not produce an apparent oscillation for the parameters he chose originally. This explains why Zambelli (1992;2007), when he simulated the model with Frisch's parameters, found a monotone return to equilibrium. This result is a consequence of the fact that, when started from the same initial conditions, the cycles have a very small amplitude and are dominated by the real exponential solution.…”

Section: Frisch's Propagation Modelmentioning

confidence: 95%

The Emperor Has No Clothes: A Reply to Ginoux and Jovanovic

Carret

2023

SSRN Journal

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“…In addition, while this type of solution is useful to check the validity of our analytical solution and the level of approximation coming from the necessary truncation of the infinite series, it does not inform us in any way on the behaviour of the individual components. But such a simulation was carried out by Stefano Zambelli (1992Zambelli ( , 2007, who noticed that simulating the model with Frisch's original parameters will give rise to a monotonous return to equilibrium instead of oscillations. This odd conclusion is due to the fact that Frisch was more interested in the trajectory of each cycle rather than the complete movement of his system (the addition of all components).…”

Section: The "Secular Trend" and The Possibility Of Growth In The Rocking Horse Modelmentioning

confidence: 99%

Fluctuations and growth in Ragnar Frisch’s rocking horse model

Carret¹

2021

Preprint

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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 exists 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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The Wooden Horse That Wouldn’t Rock: Reconsidering Frisch

Cited by 17 publications

References 15 publications

Letter to the Editors: The Emperor Has No Clothes: A Reply to Ginoux and Jovanovic

Letter to the Editors: The Emperor Has No Clothes: A Reply to Ginoux and Jovanovic

The Emperor Has No Clothes: A Reply to Ginoux and Jovanovic

Fluctuations and growth in Ragnar Frisch’s rocking horse model

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