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The Possibility of Ideological Bias in Structural Macroeconomic Models

Abstract : An ideologically biased expert faces trade-offs in model design. The perceived model must be autocoherent—its use by all agents delivers a self-confirming equilibrium. Policy may be influenced by manipulating the Keynesian multiplier or the Phillips curve parameters. Ideological bias may arise in a way that resembles well-known historical controversies. A larger reported Keynesian multiplier is favored by more left-wing economists, as is a flatter inflation output trade-off. Some combinations of parameters must be truthfully revealed, illustrating the tight link between parameter identification and the scope for bias that is implied by the autocoherence conditions.
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https://halshs.archives-ouvertes.fr/halshs-01802688
Contributor : Caroline Bauer Connect in order to contact the contributor
Submitted on : Tuesday, May 29, 2018 - 3:50:22 PM
Last modification on : Friday, April 29, 2022 - 10:13:21 AM

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  • HAL Id : halshs-01802688, version 1

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Gilles Saint-Paul. The Possibility of Ideological Bias in Structural Macroeconomic Models. American Economic Journal: Macroeconomics, American Economic Association, 2018, 10 (1), pp.216-241. ⟨halshs-01802688⟩

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