The spice of life : allowing for heterogeneity in macro models
Abstract: Macroeconomic models often make simplifying assumptions that suppress differences between people. Changing these assumptions and allowing for "heterogeneity" can enrich analysis of both observed data and policy tradeoffs. Modern macroeconomics has made significant progress in this area, sometimes significantly altering economists' views and policy prescriptions.
File(s): File format is application/pdf http://www.richmondfed.org/publications/research/economic_brief/2012/pdf/eb_12-04.pdf
Provider: Federal Reserve Bank of Richmond
Part of Series: Richmond Fed Economic Brief
Publication Date: 2012
Order Number: 12-04