DSGE AND BEYOND -- COMPUTABLE AND CONSTRUCTIVE CHALLENGES (2011)
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BibTeX
@MISC{Velupillai11dsgeand,
author = {K. Vela Velupillai},
title = {DSGE AND BEYOND -- COMPUTABLE AND CONSTRUCTIVE CHALLENGES },
year = {2011}
}
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Abstract
The genesis and the path towards what has come to be called the DSGE model is traced, from its origins in the Arrow-Debreu General Equilibrium model (ADGE), via Scarf’s Computable General Equilibrium model (CGE) and its applied version as Applied Computable General Equilibrium model (ACGE), to its ostensible dynamization as a Recursive Competitive Equilibrium (RCE). An outline of a similar nature, albeit very brie‡y, of the development and structure of Agent-Based Economics (ABE) is also included. It is shown that these transformations of the ADGE model are computably and constructively untenable. Suggestions for going ’beyond DSGE and ABE’ are, then, outlined on the basis of a framework that is underpinned –from the outset –by computability and constructivity considerations.
