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Despite a history of regional economic models being patterned after their national counterparts, modern macroeconomic methodology has yet to be fully embraced by regional scientists. In this paper, I argue that modern macroeconomic methodology has much to offer the field of regional economic modeling. For one, the empirical strategies used in implementing dynamic stochastic general equilibrium models provide insights into how regional computable general equilibrium models could be better parameterized and empirically verified. In addition, the structural macroeconomic approach more generally could be used to construct structural regional policy analysis models for use as alternatives to traditional regional models.

Document Type: Research Article

DOI: http://dx.doi.org/10.1111/j.1467-9787.2009.00647.x

Affiliations: Department of Economics, Oklahoma State University, 338 Business, Stillwater, OK 74078., Email: dan.rickman@okstate.edu

Publication date: February 1, 2010

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