Selected Essays in Macroeconomics: A Study

This book consists of 19 selected papers of Professor Rao. In the first part, on the methodological issue, he argues that the aggregate demand and supply model (ADAS), which is the current dominant macroeconomic textbook model, is logically unsatisfactory. Easy to understand, these methodological essays clarify many confusions of lecturers in macroeconomics. The second part consists of several econometric papers on the estimation of the disequilibrium macro models for the USA and UK. It is shown that the Keynesian and neoclassical models can be nested within the disequilibrium framework, and the econometric results favour the Keynesian model. The final part consists of several recent papers in which time series, econometric techniques based on unit roots and cointegration have been applied to a number of topics. These are easily comprehensible to any applied economist with only a modest background in the econometric theory.