| Abstract: |
What is the state of macroeconomics? We answer this question by hand
collecting information about the epistemological approaches, theoretical and
empirical methods, and data sources used by macroeconomists in their research.
During the past 40 years there has been an increasing reliance on mathematical
theory, particularly DSGE models, with theory-based papers now occupying the
majority of space in macro journals. This shift is mirrored by a decline in
the use of empirical falsification methods testing theoretical predictions.
Microeconometric techniques have displaced time series methods, and empirical
papers increasingly rely on micro and proprietary data sources. We document a
decline and subsequent resurgence of financial frictions appearing in macro
theory. Finally, we find that topics outside of macroeconomics are studied in
more than three fourths of macro field journal publications. |