…the exact model of expectations formation typically matters a lot. Equally plausible models can have extremely different implications. Equally plausible models which fit the same data equally well can have…

…which is mental modeling — is using a dynamic simulation model. Of late I’ve been quite taken with the power grid as a good metaphor for a dynamic model of…

…with a sledgehammer is not a DSGE model and thus is not formally consistent as evidence.” “Objection overruled.” But it is well that K&R build their formally consistent model to…

…residence; given a need for liquidity and reduced price uncertainty, this preference may change. The implications of this are left as an exercise.) Assume a standard lifecycle model with intergenerational…

…model and apply it to income taxes what do we see? Interestingly we see a model flipped on its head, rather than being a burden on capitalism, an income tax…

…it adds costs. And now, we will shift the cost by shifting the administrative model to the providers via a model that is questionable. This Massachusetts model of capitation via…

John Tamny wants to remind Lawrence Lindsey about the Hume Specie Flow Model: To begin, just as Chinese authorities fix the yuan’s value, so too do U.S. authorities fix the…

…the Treasury Department for what they call the “investor model” approach to enforcing these rules. But it seems the Tax Executive Institute (TEI) is attaching this investor model, which simply…

…problem with this elegant theory of economic voting is that the actual empirical evidence has been rather varied. One of the most famous economic models of voting is the Fairmodel…

The circular flow is a model used to show how money and products move through an economy. I am going to use a simplified version to show the effect of…