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Government Spending Multiplier

 

ROBERT GELFOND and RYAN MURPHY: Out-of-Sample Tests and Macroeconomics

The replication crisis has elicited a number of recommendations, from betting on beliefs, to open data, to improved norms in academic journals regarding replication studies. In our recent working paper, “A Call for Out-of-Sample Testing in Macroeconomics” ( available at SSRN), we argue that a renewed focus on out-of-sample tests will significantly mitigate the issues with replication, and we document the fact that out-of-sample tests are absent from entire literatures in economics.

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