The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Experimental Macroeconomics

  • John Duffy
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_2224

Abstract

Experimental macroeconomics is a sub-field of experimental economics that makes use of controlled laboratory methods to understand aggregate economic phenomena and to test the specific assumptions and predictions of macroeconomic models. This article reviews important contributions of experimental macroeconomics research, which include an understanding of when equilibration works, when it fails, and the means by which macro-coordination problems are resolved. It also discusses important methodological issues including the choice of market institution, the implementation of representative agent and overlapping generations models, discounting and infinite horizons, and the external validity of experimental macroeconomic findings.

Keywords

Anchoring effects Asset pricing Bubbles Business cycles Contagion Coordination failure Double auction Equilibration Equilibrium selection Experimental macroeconomics Forecasting General equilibrium Infinite horizons Laffer curve Learning Microfoundations Money-search models Multiple equilibria Optimal growth Overlapping generations models Partial equilibrium Representative agent Search models of money Speculative attacks Strategic uncertainty Sunspot variables Time consistency 

JEL Classifications

C9 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • John Duffy
    • 1
  1. 1.