Hoover Institution and IMFS win Sloan Foundation Grant for Macroeconomic Model Comparison Initiative

The Alfred P. Sloan Foundation has awarded a three-year grant in the amount of $591,295 in support of a new Macroeconomic Model Comparison Initiative (MMCI). This is a joint project by the Hoover Institution at Stanford and the Goethe University Frankfurt’s Institute for Monetary and Financial Stability (IMFS). The new grant will assist in developing and applying new methods of research analysis in macroeconomic modeling for monetary, fiscal and macro-prudential policy.

The MMCI brings together a network of renowned economic researchers, led by John Taylor, the Mary and Robert Raymond Professor of Economics at Stanford University and the George P. Shultz Senior Fellow in Economics at the Hoover Institution; Volker Wieland, Chair of Monetary Economics and Managing Director at Goethe University Frankfurt’s Institute for Monetary and Financial Stability; and Michael Binder, Chair of International Macroeconomics and Macroeconometrics.

“We are enthusiastic about collaborating with leading research institutions such as the Sloan Foundation and the Hoover Institution on this important initiative. Its goal is to change research on macroeconomic modeling by making it more reproducible, collaborative and comparative in nature” stated IMFS Managing Director Volker Wieland. 

Quantitative macroeconomic models play an important role in informing policy makers about the effects of monetary, fiscal and macro-prudential policies. Yet, little progress has been made to advance the development of methods and norms that are essential to making comparisons of such models both practical to carry out and highly informative. As part of the MMCI, the Macroeconomic Model Data Base (MMB), which already features about 70 macroeconomic models, will be developed into an interactive, open-source based platform for researchers reproducing and replicating models.

“The MMCI aims to put macroeconomists in a stronger position to inform policy makers at central banks, finance ministries, legislative bodies, regulatory authorities and international organizations about policy strategies the effects of which are robust to model uncertainty” stated IMFS Affiliated Professor Michael Binder.