Edited by Robert W. Dimand and Harald Hagemann
Chapter 72: Lawrence R. Klein
The Keynesian Revolution (1947), by 1980 Nobel laureate Lawrence Klein, established the concept of a Keynesian revolution in economics, as distinct from an evolutionary development of earlier theories. Klein initially wrote the book as his doctoral dissertation at the Massachusetts Institute of Technology, where he was the first PhD student in economics and finished graduate school in two years. Subsequently, at the Cowles Commission and at the universities of Michigan, Oxford and Pennsylvania, Klein was the pioneer and outstanding figure in large-scale, simultaneous-equation, structural macroeconomic modelling, from Klein Model I in his Cowles monograph through the Klein-Goldberger, Brooking and Wharton models of the US economy and models of British, Japanese and other economies through to Project LINK, which linked structural macroeconometric models of national economies to model the world economy. Klein responded vigorously to criticism from T.C. Liu that the equations of large structural models could not be identified because there are not enough truly exogenous variables and from Robert Lucas that structural models cannot be used for policy evaluation because the parameters have been estimated with data from a given policy regime.
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.