Explain the lucas review. Make particular reference to the IS-LM model
Practical Management Science
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ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Explain the lucas review. Make particular reference to the IS-LM model
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Dr. Robert E. Lucas Jr. is a long-serving professor at the University of Chicago and a New Classical economist. Dr. Lucas is well recognised for creating rational expectations theory and the Lucas Critique of macroeconomic policy. He has made significant contributions to endogenous growth theory and unified growth theory.
He is most known for the Lucas-Uzawa model, which explains long-run economic growth as a function of human capital accumulation, and the Lucas Paradox, which questions why capital does not appear to flow to places where capital is scarce, as neoclassical growth theory predicts.
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