In the 1980s, there were occasions when it made sense to say, 'it is too difficult to maximize the likelihood function, and besides if we do, it will blow our model out of the water.'

While this institutional differences remained the same over this time period the microeconomic environment for workers changed with a higher risk of human capital depreciation in the 1980s. from Harvard in 1968. and Edward C.

Sims "for their empirical research on cause and effect in the macroeconomy". He was awarded the Nobel Prize in Economics in 2011 together with Christopher A. He is currently a Professor of Economics at New York University.