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fp3690
01-29-2008, 09:07 PM
I realize there are many Minnesota hopefuls, so I thought I shouldn't tease them.

I keep reading in this forum that Minnesota has a very special kind of approach to macro, which does not suit everyone. Reading around in their website, I saw the typical warnings about highly technical content, but that was it. So, can anyone illuminate me as to why Minnesota is considered to be an "alternative" in macro?

asquare
01-29-2008, 09:10 PM
My tongue-in-cheek answer is that in Minnesota, labor supply elasticity is 2. Everywhere else, it is 0.5. I'm sure someone else will provide a more coherent explanation :)

Tex Jansen
01-29-2008, 09:57 PM
10 Commandments of Minnesota Macro

1. Empirical work=calibration. Thou shalt not do standard time-series.

2. Thou shalt not refer to anything except money search models as monetary economics.

3. Thou shalt not assume sticky prices.

4. Ed Prescott is The Lord your God, Who brought you out of the land of Egypt, out of the house of bondage. You shall have no other gods before him

5. Thou shalt not deviate from rational expectations.

6. Though shalt not consider the Review of Economic Dynamics a second tier journal.

7. Thou shalt not write down a model without a unique equilibrium.

8. Thou shalt not include money in thy utility function.

9. Thou shalt not reject a paper due to exotic preferences or technology.

10. Thou shalt not kill, unless thy victim is part of the NBER.

asquare
01-29-2008, 10:32 PM
Tex, that's one of the best posts I've read!! Well done :D

fp3690
01-29-2008, 11:04 PM
Tex, that's one of the best posts I've read!! Well done :D

It really is. It would be worth sticking a pin to it (or whatever is the term for threads that keep staying on top).

Oikos-nomos
01-30-2008, 06:46 PM
Tex, that's one of the best posts I've read!! Well done :D

Damn right it is! Hilarious!

econphilomath
01-30-2008, 07:02 PM
Several of theose ten commandments are actually results of a commandment that is missing and is the first and most important one. (well at least after Prescott being god)

Thou shall be as rigorous as possible and question everything including assumptions everyone else likes.

So not loving "sticky prices" nor just sticking money in the utility function are results of this way of thinking about economics. It should be mentioned that the department at Minnesota has produced a large amount of economist who have generated original and creative additions to the science. So something must be going on right there.

I think the famous clannishness of the department is both something good and bad. its good because the brotherhood of UMinn are really loyal and they share a great passion for economics. The bad thing it kind of feeds upon them being a special separate tribe and makes them a sort of outcasts as they shun new ideas and those who are strangers. It does protect them from fades however...

Just my :2cents:

BTW I gave Tex some well earned rep points, I just wanted to be fair with what I regard as an excellent place to do macro. (a special macro but still macro in the end)

doubtful
01-31-2008, 02:39 AM
about number 1) I made my entire SOP based on Calibration (I did not even know they cared so much). I have a couple of forthcoming publications in the area.. so let's see what happens..