Explain why there are differences between the physiocratic and modern approaches to models, focusing on their different purposes.
The physiocrats created the first “model” of economic life. Describe its structure and its dynamics (i.e., how does the model “work”). Now compare and contrast this model with modern macroeconometric models (e.g., the Klein model, the DRI model, etc.). Include in your essay the structure of models, the estimation of models, the dynamics of models, and forecasting of models. Explain […]
