The Challenge of Measuring and Modeling a Dynamic Economy

Greenspan, Alan
April 2001
Business Economics;Apr2001, Vol. 36 Issue 2, p5
Academic Journal
There is a trade-off between better data and better analysis in the allocation of scarce economic research resources. Although great strides have been made in econometric models, their use as predictive devices does not seem to be superior to simple, reduced-form models, even though they have provided valuable insights into the functioning of the economy. The financial sector, in particular, presents unresolved problems in theory and modeling. However, given the rapid change in the structure of the U.S. economy, it appears that getting better data may provide a better return than more sophisticated analysis. This is particularly true for prices and output in service industries. The Federal Reserve System, as well as the Bureau of Labor Statistics, the Bureau of Economic Analysis, and the Census Bureau, have made great strides in the conceptual improvement of economic measurement, but much remains to be done.


Related Articles

  • Fed Sets 0.25% Minimum On $50B of 28-Day TAFs. Siegel, Gary E. // Bond Buyer;2/9/2010, Vol. 371 Issue 33263, p2 

    The article reports on the announcement of the U.S. Federal Reserve Board to sell 0.25 percent minimum bid on its 50 billion dollars 28-day term-auction facility.

  • Let's not forget plain English. Waddell, Harry // ABA Banking Journal;Oct80, Vol. 72 Issue 10, p30 

    Announces the proposed pricing principles of the United States Federal Reserve Board. Impact of the pricing policies in the banking industry; Compliance of the law requiring plain English in contracts; Agreement between mutual savings bank and customers on safe deposit boxes.

  • Fed's pricing proposals raise many questions. Rideout, Thomas P. // ABA Banking Journal;Oct80, Vol. 72 Issue 10, p47 

    Focuses on the impact of the pricing proposal of the United States Federal Reserve Board in the banking industry. Provisions of the Monetary Control Act; Services covered by the fee schedule; Allocation of imputed costs.

  • Beanie Baby theory: Why interest rate hike is needed. Reed, Robert // Crain's Chicago Business;05/11/98, Vol. 21 Issue 19, p11 

    Opinion. Discusses the increase in selling prices of goods and services, with reference to the need for the United States Federal Reserve Board to monitor these increases. Information on such increases; Effects of the increases on the economy.

  • Municipal Bond Prices End Firm; Greenspan, New Issues on Plate. Monsarrat, Sean // Bond Buyer;4/15/2002, Vol. 340 Issue 31365, p2 

    Reports the growth of the municipal bonds in the U.S. Testimony from Federal Reserve Board chairman Alan Greenspan. Decline of the Treasury Rise of producer price index; Supply of available bonds in the primary and secondary market.

  • Municipals Jump ¼ to 3⁄8 of a Point Amid Another Day of Equity Volatility. Chesla, Nicholas // Bond Buyer;7/12/2002, Vol. 341 Issue 31426, p2 

    Reports the increase of municipal bond prices in the U.S. Acceleration of the producer price index (PPI); Impact of PPI on inflation rate; Consideration of rate hikes by the Federal Reserve Board.

  • Rate Hike Spurs Temporary Rally. Husband, Sarah; Appin, Rick // High Yield Report;4/23/2001, Vol. 12 Issue 16, p4 

    Focuses on the 50 basis points rate reduction the U.S. Federal Reserve. Impact of rate reduction on the financial market; Details on the bond pricing of several companies; Influence of volatility and liquidity on rate reduction.

  • Bernanke: Fed Will React As Needed to Oil Prices. Siegel, Gary E. // Bond Buyer;3/2/2011, Vol. 375 Issue 33475, p2 

    The article reports on the plan of the U.S. Federal Reserve Board to monitor developments and respond to increases in oil prices.

  • Averages rally into second rate cut.  // Dow Theory Forecasts;2/5/2001, Vol. 57 Issue 6, p3 

    Comments on the decrease of interest rates by the United States Federal Reserve Board. Implications of interest rate cut-off on corporate profits; Dependence of business conditions on stock price valuation; Importance of investment strategies.


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics