Nobel Laureate: Trygve Haavelmo

Moene, Karl Ove; Rødseth, Asbjørn

doi:10.1257/jep.5.3.175

Cited by 11 publications

(8 citation statements)

References 19 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…It will never be known whether or not the perspective adopted by Haavelmo in SMT could have provided a powerful guideline and a different direction of development. Moene and Rødseth (1991) pointed out an interesting parallel to Tobin's q-theory of investment (see Tobin, 1969). The difference is that while Tobin's theory needed rationalization in the form of convex adjustment costs to obtain 'smooth' investments, as in Hayashi (1982), Haavelmo-in an extended two-sector version-obtained a logically sound solution for the investment level with reference to the productive capacity of the macro economy itself.…”

Section: Overdeterminacy and Endogenous Cycles 475mentioning

confidence: 99%

“…This book was on the reading list for several generations of Norwegian economists, but was unfortunately never translated into English. By paying attention to aspects of Haavelmo's theories that are relevant for business cycles and monetary policy, our paper supplements the excellent presentation by Moene and Rødseth () of Haavelmo's contributions to econometrics and economics…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Overdeterminacy and Endogenous Cycles: Trygve Haavelmo's Business Cycle Model

et al. 2014

View full text Add to dashboard Cite

The econometrician Trygve Haavelmo followed a research program in macroeconomic theory that was highly original for its time. We present his macro model for an economy with deregulated financial markets and a policy determined interest rate path. Disequilibria arise in the interface between asset markets and the real economy. A mismatch between the marginal return to capital and investors' required rate generates endogenous switching between recession and full employment. Haavelmo regarded the 'switching mechanism' as a substitute for liquidity constraints, and together with his ideas for price dynamics, there is a clear Keynesian and Wicksellian influence on his macroeconomic theorising.

show abstract

Section: Overdeterminacy and Endogenous Cycles 475mentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Overdeterminacy and Endogenous Cycles: Trygve Haavelmo's Business Cycle Model

et al. 2014

View full text Add to dashboard Cite

show abstract

“…The first econometrics textbook (Davis 1941) cites him. 1 Haavelmo had a long career, yet by 1991 Moene and Rødseth (1991) write "few younger economists outside of Norway have read anything he wrote . .…”

Section: Haavelmo's Changing Intellectual Fortunesmentioning

confidence: 99%

“…Contrary to Nerlove's (1990, p. 22) speculation, his paper "The Multiplier Effects of a Balanced Budget," though well cited is not a top performer. Haavelmo was, as Moene and Rødseth (1991) maintain, an economist with broad interests and achievements. Nonetheless, in placing our focus, on his early contributions to econometrics, we are confirming the revealed evaluation of the economics profession.…”

Section: Haavelmo's Changing Intellectual Fortunesmentioning

confidence: 99%

On the Reception of Haavelmo’s Econometric Thought

Hoover

2012

SSRN Journal

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Econometrics (1944) has been widely regarded as the foundation document of modern econometrics. Nevertheless, its significance has been interpreted in widely different ways. Some modern economists regard it as a blueprint for a provocative, but ultimately unsuccessful, program dominated by the need for a priori theoretical identification of econometric models. They call for new techniques that better acknowledge the interrelationship of theory and data. Others credit Haavelmo with an approach that focuses on statistical adequacy rather than theoretical identification. They see many of Haavelmo's deepest insights as having been unduly neglected. The current paper uses bibliometric techniques and a close reading of econometrics articles and textbooks to trace the way in which the economics profession received, interpreted, and transmitted Haavelmo's ideas. A key irony is that the first group calls for a reform of econometric thinking that goes several steps beyond Haavelmo's initial vision; while the second group argues that essentially what the first group advocates was already in Haavelmo's Probability Approach from the beginning. Terms of use: Documents in

show abstract

“…Rather, he felt that the available economic theory of the time was not up to the challenge envisaged, and had previously stated that view in his presidential address to the Econometric Society, published as Haavelmo (1958). Implementing his view, he had spent much of the intervening * The first author was supported in part by grants from the Open Society Foundations and the Oxford Martin School, and the period on improving economic reasoning, mainly published in Norwegian: see e.g., Bjerkholt (2005), Bjerkholt (2007) and Moene and Rødseth (1991). To quote Haavelmo (1989):…”

Section: Introductionmentioning

confidence: 99%

Model Discovery and Trygve Haavelmo’s Legacy

Hendry

Johansen

2014

Econom. Theory

View full text Add to dashboard Cite

Trygve Haavelmo's Probability Approach aimed to implement economic theories, but he later recognized their incompleteness. Although he did not explicitly consider model selection, we apply it when theory-relevant variables, {x t }, are retained without selection while selecting other candidate variables, {w t }. Under the null that the {w t } are irrelevant, by orthogonalizing with respect to the {x t }, the estimator distributions of the x t 's parameters are unaffected by selection even for more variables than observations and for endogenous variables. Under the alternative, when the joint model nests the generating process, an improved outcome results from selection. This implements Haavelmo's program relatively costlessly.JEL classifications: C51, C22.

show abstract

Nobel Laureate: Trygve Haavelmo

Cited by 11 publications

References 19 publications

Overdeterminacy and Endogenous Cycles: Trygve Haavelmo's Business Cycle Model

Overdeterminacy and Endogenous Cycles: Trygve Haavelmo's Business Cycle Model

On the Reception of Haavelmo’s Econometric Thought

Model Discovery and Trygve Haavelmo’s Legacy

Contact Info

Product

Resources

About