This paper provides a look into what Lucas meant by the term 'analogue systems' and how he conceived making them useful. It is argued that any model can be regarded as an analogue system provided it has remarkable predictive success. The term is thus neutral in terms of usefulness. To be useful,...

This paper provides a look into what Lucas meant by the term 'analogue systems' and how he conceived making them useful. It is argued that any model can be regarded as an analogue system provided it has remarkable predictive success. The term is thus neutral in terms of usefulness. To be useful,...

In the U.S., the cross-state differences in unemployment rates are large - for instance, large compared to variations in the national unemployment rate over time. At the same time, there is considerable labor mobility within the U.S.; in fact, enough that, if migration arbitrages differences in...