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Volume 20  Number 4  •  Spring 2016
Other Issues:  

Economic Modeling
Why the Standard Model Survives Bad Performance
By Steven D. Gjerstad, Vernon L. Smith
This article appeared in the Spring 2016 issue of The Independent Review

Many forecasters have relied on a model that has yielded overly optimistic predictions for the economy’s recovery from the Great Recession. The standard model has performed poorly because it is ill-suited for dealing with housing cycles, especially those that include speculation-driven housing purchases, unusual levels of mortgage credit, and large international capital flows.

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Other Independent Review articles by Vernon L. Smith
    Winter 2002   Demand-Side Bidding Will Reduce the Level and Volatility of Electricity Prices