Are Policy Variables Exogenous?

This book demonstrates that Bayesian learning by rational policymakers affects the exogeneity status of policy variables in econometric models by creating an intertemporal informational feedback. This phenomenon is empirically detectable using exogeneity tests. This makes the book relevant for empirical, as well as theoretical econometricians.

Contenu
I Introduction.- II A Paradigmatic Example.- III Econometric Implications.- IV Simulation.- V Tests for Exogeneity.- VI Summary, Directions for Future Research.- Appendices.- Appendix A.- Appendix B.- Appendix C.- Appendix D.