Solving Vincent Carret's Puzzle: A Rebuttal of Carret's Fallacies and Errors

Résumé 0

The present rejoinder aims at rebutting Carret's allegation of mistaken interpretation in our work. We expose mathematical errors in Carret's work, also present in his publications with Assous. Then, and most importantly, we show the unfounded economic consequences that follow from erroneous mathematical assumptions about Frisch's model. We demonstrate that Carret's statements are based on a misunderstanding of Frisch's econometric model and approach. Then, we show that Carret's results are not supported by the demonstration he claims to have made, and that he misrepresents the arguments of some authors, making them say things they never said. In a recent article that gave birth to a mini-symposium, we propose a solution to a controversy about Frisch's work opened 30 years ago by Stefano Zambelli (Ginoux and Jovanovic 2022c). In 1992 and 2007, Zambelli published a numerical analysis of one of the models developed by Frisch in his seminal book chapter "Propagation problems and impulse problems in dynamic economics." In the conclusion of his work, supported by his numerical analysis, Zambelli claimed that Frisch's "rocking horse model is not rocking!" Since then, several authors have taken up this conclusion