Minimize regulations to regulate -- Extending the Lucas Critique

C-Tier
Journal: Economic Modeling
Year: 2008
Volume: 25
Issue: 4
Pages: 623-627

Score contribution per author:

0.335 = (α=2.01 / 3 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Lucas [Lucas, Robert, E., Jr. (1976), "Econometric Policy Evaluation: A Critique", Carnegie-Rochester Conference Series on Public Policy, 1, pp 19-46] had argued that interventionist macroeconomics policies may fail because policies themselves affect the optimal behaviour of private agents and hence the associated response parameters. We extend Lucas argument and propose that highly controlled and regulated environment leads to misinterpretation of official statistics and therefore distort policy predictions based on such information. In a way policies will have predictability in a more open and less regulated environment.

Technical Details

RePEc Handle
repec:eee:ecmode:v:25:y:2008:i:4:p:623-627
Journal Field
General
Author Count
3
Added to Database
2026-01-24