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Endogenous growth models: a critique of empirical testability

โœ Scribed by Damian Brindley


Publisher
Elsevier Science
Year
1995
Tongue
English
Weight
315 KB
Volume
39
Category
Article
ISSN
0378-4754

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## Abstract This paper reconsiders the empirical relevance of the Lucas critique using a DSGE sticky price model in which a weak central bank response to inflation generates equilibrium indeterminacy. The model is calibrated to capture the magnitude of the historical shift in the Federal Reserve's