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Comparative Properties of Models of the UK Economy

Published online by Cambridge University Press:  26 March 2020

Keith B. Church ,
Joanne E. Sault ,
Silvia Sgherri  and
Kenneth F. Wallis
Keith B. Church
Affiliation:
Department of Economics, University of Warwick, Coventry, CV4 7AL
Joanne E. Sault
Affiliation:
Department of Economics, University of Warwick, Coventry, CV4 7AL
Silvia Sgherri
Affiliation:
Department of Economics, University of Warwick, Coventry, CV4 7AL
Kenneth F. Wallis
Affiliation:
Department of Economics, University of Warwick, Coventry, CV4 7AL
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Abstract

This article analyses the properties of five leading macroeconometric models of the UK economy, as revealed in four simulation experiments. These are carried out in a common operating environment that reflects the broad objectives of current policy — sound public finances and low inflation — by using feedback rules for income tax and interest rates. Developments in the structure of the models as revealed by the series of such exercises carried out during the lifetime of the ESRC Macroeconomic Modelling Bureau (1983–99) are described. The development of the research methods through which models' properties were elucidated and analysed is also reviewed.

Type
Articles
Information
National Institute Economic Review , Volume 171 , January 2000 , pp. 106 - 122
Copyright
Copyright © 2000 National Institute of Economic and Social Research

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Footnotes

∗

This article concludes the series of surveys published in the National Institute Economic Review by the ESRC Macroeconomic Modelling Bureau at the University of Warwick. Editorial responsibility is taken by the authors, not by the Editorial Board of the Review. Comments should be addressed to the last-named author at Department of Economics, University of Warwick, Coventry CV4 7AL ([email protected]).

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