Economic Modeling: Why the Standard Model Survives Bad Performance
Many forecasters have relied on a model that has yielded overly optimistic predictions for the economy’s recovery from the Great Recession. The standard model has performed poorly because it is ill-suited for dealing with housing cycles, especially those that include speculation-driven housing purchases, unusual levels of mortgage credit, and large international capital flows.
Gjerstad, S. D., & Smith, V. L. (2016). Economic modeling why the standard model survives bad performance. The Independent Review, 20(4), 627-631.
The Independent Review