The Methodology of Empirical Macroeconomics [Paperback]

This work occupies a pragmatic middle ground between traditional economic methodology and recent descriptive approaches.Economic methodology typically focuses on microeconomic theory. The Methodology of Empirical Macroeconomics breaks new ground by focusing instead on the genuine problems that arise for macroeconomists trying to relate theory to data. It demonstrates that with careful attention to actual macroeconomic practice, economic methodology and the philosophy of science help to resolve problems faced by working macroeconomists. Some issues addressed are: the relationship between theoretical models and empirical observations; microfoundations for macroeconomics; the scope and nature of economic laws, the role of idealizations, methodological individualism, and the problem of causality.Economic methodology typically focuses on microeconomic theory. The Methodology of Empirical Macroeconomics breaks new ground by focusing instead on the genuine problems that arise for macroeconomists trying to relate theory to data. It demonstrates that with careful attention to actual macroeconomic practice, economic methodology and the philosophy of science help to resolve problems faced by working macroeconomists. Some issues addressed are: the relationship between theoretical models and empirical observations; microfoundations for macroeconomics; the scope and nature of economic laws, the role of idealizations, methodological individualism, and the problem of causality.Economic methodology typically focuses on microeconomic theory. The Methodology of Empirical Macroeconomics breaks new ground by focusing instead on the genuine problems that arise for macroeconomists trying to relate theory to data. It demonstrates that with careful attention to actual macroeconomic practice, economic methodology and the philosophy of science help to resolve problems faced by working macroeconomists. Some issues addressed are: the relationship between theoretical models and empirical l3R