chapter  VI
RATIONAL EXPECTATIONS AND THE NEW NEOCLASSICISTS
Pages 15

One legacy of Keynes to modern economics has been taken to be the explosive growth of econometric model estimation. This is of course ironic given his critique of econometric modeling in his debate with Tinbergen. To verify empirically the conclusions derived from ‘keynesian’ models purported to have been developed on Keynesan foundations, conclusions with respect to consumption, investment, liquidity, and the role of government intervention, keynesians were driven to employ ever more powerful econometric techniques (two-stage least squares, three-stage least squares, Probit and Tobit models, to name but a few).