Please use this identifier to cite or link to this item:
Main Title: Experiments in macroeconomics: methods and applications
Author(s): Cornand, Camille
Heinemann, Frank
Type: Book Part
Language Code: en
Abstract: This chapter lays out in what ways laboratory experiments can be useful for macroeconomics and discusses some of the methods used in such experiments. Among the main advantages are: bench-testing of alternative policies, capturing strategic uncertainty and biases from standard preferences or Bayesian updating, and accounting for heterogeneity in agents’ expectations and behavior. It is explained how DSGE models are implemented in laboratory experiments and how heuristic switching models can be used to analyze expectations out of equilibrium. A short literature review provides some results from direct tests of the various elements of microfoundation on which DSGE models are built. The methods of testing consumption smoothing and informational frictions are discussed in more detail. While experimental macroeconomics is a growing field, which has been useful in many respects, this chapter also discusses its challenges and limitations.
Issue Date: 26-Jul-2019
Date Available: 8-Nov-2019
DDC Class: 330 Wirtschaft
Subject(s): macroeconomics
laboratory experiments
DSGE model
Book Title: Handbook of research methods and applications in experimental economics
Editor: Schram, Arthur
Ule, Aljaž
Publisher: Edward Elgar Publishing
Publisher Place: Cheltenham, UK ; Northampton, MA, USA
Publisher DOI: 10.4337/9781788110563.00024
Page Start: 269
Page End: 294
ISBN: 978-1-78811-056-3
Appears in Collections:FG Makroökonomik » Publications

Files in This Item:
File Description SizeFormat 
cornand_heinemann_2019.pdfAccepted manuscript285.2 kBAdobe PDFThumbnail

Items in DepositOnce are protected by copyright, with all rights reserved, unless otherwise indicated.