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Comparative Properties of Models of the UK Economy

Published online by Cambridge University Press:  26 March 2020

K.B. Church ,
P.R. Mitchell ,
P.N. Smith  and
K.F. Wallis
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Abstract

This article describes the current versions of six major macroeconometric models, and analyses their overall properties as revealed in standard simulation experiments. Particular attention is given to a policy issue of long-standing importance, namely the control of the size of the government budget deficit. Analysis of the impact on the government budget deficit of a range of policy instruments under a number of deficit-funding regimes shows that there is considerable disagreement between the models on the size and time-profile of these effects. Modelling of the exchange rate remains a key issue in assessing differences in model behaviour.

Type
Articles
Information
National Institute Economic Review , Volume 145 , August 1993 , pp. 87 - 107
Copyright
Copyright © 1993 National Institute of Economic and Social Research

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Footnotes

∗

This article continues 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.

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