Testing the Lucas critique in Malaysia: a comment
The advent of ’rational expectation hypothesis’ (REH) in 1970’s sparked intense debate on the effectiveness of discretionary aggregate demand policies in influencing real economic activities. In line with this, the Lucas Critique (Lucas, 1976), that embodies the REH, questions the efectiveness of p...
| 主要な著者: | , |
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| フォーマット: | 論文 |
| 言語: | English |
| 出版事項: |
Universiti Utara Malaysia
2003
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| 主題: | |
| オンライン･アクセス: | https://repo.uum.edu.my/id/eprint/317/1/Noor_Azlan_Ghazali.pdf |
| _version_ | 1825739663738929152 |
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| author | Ghazali, Noor Azlan Ibrahim, Izani |
| author_facet | Ghazali, Noor Azlan Ibrahim, Izani |
| author_sort | Ghazali, Noor Azlan |
| collection | UUM |
| description | The advent of ’rational expectation hypothesis’ (REH) in 1970’s sparked intense debate on the effectiveness of discretionary aggregate demand policies in influencing real economic activities. In line with this, the Lucas Critique
(Lucas, 1976), that embodies the REH, questions the efectiveness of policy rule that frequently adopted in the set up of monetary policy. This commentary revisited the foundations of Lucas Critique and empirical studies reported
by Habibullah, Azali dan Baharumshah (2001) (in short, HAB) on the validity of the critique within the Malaysian economy. The Lucas Critique is explained in greater detail based on an economic model that incorporates the
behaviours of economic agents that form their expectation rationally. Brief empirical analysis indicates that rejection of Lucas Critique as proposed by HAB requires further invesigatations before it can be a generalization. |
| first_indexed | 2024-07-04T05:13:06Z |
| format | Article |
| id | uum-317 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T05:13:06Z |
| publishDate | 2003 |
| publisher | Universiti Utara Malaysia |
| record_format | eprints |
| spelling | uum-3172010-07-27T08:10:54Z https://repo.uum.edu.my/id/eprint/317/ Testing the Lucas critique in Malaysia: a comment Ghazali, Noor Azlan Ibrahim, Izani HG Finance The advent of ’rational expectation hypothesis’ (REH) in 1970’s sparked intense debate on the effectiveness of discretionary aggregate demand policies in influencing real economic activities. In line with this, the Lucas Critique (Lucas, 1976), that embodies the REH, questions the efectiveness of policy rule that frequently adopted in the set up of monetary policy. This commentary revisited the foundations of Lucas Critique and empirical studies reported by Habibullah, Azali dan Baharumshah (2001) (in short, HAB) on the validity of the critique within the Malaysian economy. The Lucas Critique is explained in greater detail based on an economic model that incorporates the behaviours of economic agents that form their expectation rationally. Brief empirical analysis indicates that rejection of Lucas Critique as proposed by HAB requires further invesigatations before it can be a generalization. Universiti Utara Malaysia 2003 Article PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/317/1/Noor_Azlan_Ghazali.pdf Ghazali, Noor Azlan and Ibrahim, Izani (2003) Testing the Lucas critique in Malaysia: a comment. Analisis, 10 (1). pp. 181-191. ISSN 0127-8983 http://ijms.uum.edu.my/ |
| spellingShingle | HG Finance Ghazali, Noor Azlan Ibrahim, Izani Testing the Lucas critique in Malaysia: a comment |
| title | Testing the Lucas critique in Malaysia: a comment |
| title_full | Testing the Lucas critique in Malaysia: a comment |
| title_fullStr | Testing the Lucas critique in Malaysia: a comment |
| title_full_unstemmed | Testing the Lucas critique in Malaysia: a comment |
| title_short | Testing the Lucas critique in Malaysia: a comment |
| title_sort | testing the lucas critique in malaysia a comment |
| topic | HG Finance |
| url | https://repo.uum.edu.my/id/eprint/317/1/Noor_Azlan_Ghazali.pdf |
| work_keys_str_mv | AT ghazalinoorazlan testingthelucascritiqueinmalaysiaacomment AT ibrahimizani testingthelucascritiqueinmalaysiaacomment |