Rational Expectations Models
Nowadays, many large-scale macroeconometric models explicitly include forward expectation variables that allow for a better accordance with the underlying economic theory and also provide a response to the Lucas critique. These ongoing efforts gave rise to numerous models currently in use in various countries. Among others, we may mention MULTIMOD (Masson et al. ) used by the International Monetary Fund and MX-3 (Gagnon ) used by the Federal Reserve Board in Washington; model QPM (Armstrong et al. ) from the Bank of Canada; model Quest (Brandsma ) constructed and maintained by the European Commission; models MSG and NIGEM analyzed by the Macro Modelling Bureau at the University of Warwick.
KeywordsRational Expectation Newton Step Task Parallelism Country Model Rational Expectation Model
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