Comments on: Minnesota Macro: The Real Villains http://www.arnoldkling.com/blog/minnesota-macro-the-real-villains/ taking the most charitable view of those who disagree Mon, 21 Dec 2020 14:00:34 +0000 hourly 1 https://wordpress.org/?v=4.0.32 By: riverbank http://www.arnoldkling.com/blog/minnesota-macro-the-real-villains/#comment-401551 Tue, 18 Feb 2014 12:56:30 +0000 http://www.arnoldkling.com/blog/?p=2746#comment-401551 Why visitors still use to read news papers when in this technological globe all
is accessible on web?

]]> By: PJ http://www.arnoldkling.com/blog/minnesota-macro-the-real-villains/#comment-395042 Fri, 14 Feb 2014 12:03:10 +0000 http://www.arnoldkling.com/blog/?p=2746#comment-395042 What are your favorite papers of Clower and Leijonhufvud that I (in a job that gives me some latitude to take some risk) might take a cue from? I’ve always wondered what the best alternative (to DSGE) is and I think you’re the first to give me a hint!

]]> By: Arnold Kling http://www.arnoldkling.com/blog/minnesota-macro-the-real-villains/#comment-392295 Wed, 12 Feb 2014 19:31:02 +0000 http://www.arnoldkling.com/blog/?p=2746#comment-392295 No, my beef is that they are working with imprecise data that is subject to structural change and short-term peculiarities, and they ignore that. Any competent statistician wants to start with clean data. The people who use VAR’s do not give a darn.

]]> By: Jack PQ http://www.arnoldkling.com/blog/minnesota-macro-the-real-villains/#comment-392220 Wed, 12 Feb 2014 18:42:37 +0000 http://www.arnoldkling.com/blog/?p=2746#comment-392220 I’m not sure I follow your hostility to Vector Autoregressions (VAR). VARs are time series models to describe statistical relationships. They are agnostic about economic relationships and specifically, cause and effect.

Dr. Kling, your beef with VARs is that people use them to assert cause-and-effect economic relationships, isn’t it? When in reality VARs allow no such thing (unless you bring in heavy cavalry such as Structural VARs, which are economically meaningful but also giants of clay).

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