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On Macroeconomic Policy and Macroeconometric Models

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  • KENNETH F. WALLIS
Abstract
Macroeconometric models provide a formal and quantified framework that is an irreplaceable adjunct to the processes of policy thought. This article analyzes some recent developments in model structure and model use, and the interactions between them. Two major areas in which recent research has contributed to the ongoing process of model development are considered, namely the ‘supply‐side’ approach to wages and unemployment, and the modelling of the exchange rate. An improved vehicle for macroeconomic policy analysis is an objective of such developments, and some issues surrounding the use of macroeconometric models in policy analysis are discussed

Suggested Citation

  • Kenneth F. Wallis, 1993. "On Macroeconomic Policy and Macroeconometric Models," The Economic Record, The Economic Society of Australia, vol. 69(2), pages 113-130, June.
    • Handle: RePEc:bla:ecorec:v:69:y:1993:i:2:p:113-130
    DOI: 10.1111/j.1475-4932.1993.tb01808.x
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    References listed on IDEAS

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    Cited by:

    1. den Butter, Frank A. G. & Morgan, Mary S., 1998. "What makes the models-policy interaction successful?," Economic Modelling, Elsevier, vol. 15(3), pages 443-475, July.
    2. Valadkhani, Abbas, 2004. "History of macroeconometric modelling: lessons from past experience," Journal of Policy Modeling, Elsevier, vol. 26(2), pages 265-281, February.
    3. Albert van der Horst & Jan Jacobs & Lambert Schoonbeek,, 1996. "Is there a NAIRU for the Netherlands?," Working Papers 28, Centre for Economic Research, University of Groningen and University of Twente.
    4. de Kam, C. A. & de Haan, J. & Giles, C. & Manresa, A. & Berenguer, E. & Calonge, S., 1996. "Who pays the taxes?," MPRA Paper 7146, University Library of Munich, Germany.
      • C. A. de Kam & J. de Haan & C. Giles & A. Manresa & E. Berenguer & S. Calonge & J. Merz, 1996. "Who pays the taxes?," FFB-Discussionpaper 18, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.
    5. Henk Don, 2004. "How econometric models help policy makers; theory and practice," CPB Discussion Paper 27, CPB Netherlands Bureau for Economic Policy Analysis.
    6. Bardsen, Gunnar & Eitrheim, Oyvind & Jansen, Eilev S. & Nymoen, Ragnar, 2005. "The Econometrics of Macroeconomic Modelling," OUP Catalogue, Oxford University Press, number 9780199246502.
    7. Bagnai, Alberto, 2009. "The role of China in global external imbalances: Some further evidence," China Economic Review, Elsevier, vol. 20(3), pages 508-526, September.
    8. G.C. Lim & Robert Dixon & Sarantis Tsiaplias, 2009. "Phillips Curve and the Equilibrium Unemployment Rate," The Economic Record, The Economic Society of Australia, vol. 85(271), pages 371-382, December.

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