The Possibility of Ideological Bias in Structural Macroeconomic Models
American Economic Journal: Macroeconomics
vol. 10,
no. 1, January 2018
(pp. 216-41)
Abstract
An ideologically biased expert faces trade-offs in model design. The perceived model must be autocoherent—its use by all agents delivers a self-confirming equilibrium. Policy may be influenced by manipulating the Keynesian multiplier or the Phillips curve parameters. Ideological bias may arise in a way that resembles well-known historical controversies. A larger reported Keynesian multiplier is favored by more left-wing economists, as is a flatter inflation output trade-off. Some combinations of parameters must be truthfully revealed, illustrating the tight link between parameter identification and the scope for bias that is implied by the autocoherence conditions.Citation
Saint-Paul, Gilles. 2018. "The Possibility of Ideological Bias in Structural Macroeconomic Models." American Economic Journal: Macroeconomics, 10 (1): 216-41. DOI: 10.1257/mac.20140154Additional Materials
JEL Classification
- A11 Role of Economics; Role of Economists; Market for Economists
- D72 Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- E12 General Aggregative Models: Keynes; Keynesian; Post-Keynesian
- E13 General Aggregative Models: Neoclassical
- E52 Monetary Policy
- E61 Policy Objectives; Policy Designs and Consistency; Policy Coordination<
- E62 Fiscal Policy
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