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Differences in the Properties of Large-Scale Macroeconometric Models: The Role of Labour Market Specifications

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Author Info
Turner, David S
Wallis, Kenneth F
Whitley, John D

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Abstract

This paper examines important differences in simulation properties of four leading U.K. macroeconometric models that arise from features of their labor market specification. Econometric evaluation of model equations and their subsequent respecification, together with sensitivity analysis of simulation results, explains and resolves differences in overall model properties. The examples cover the determination of non-manufacturing employment, the modeling of employment, unemployment and the working population, and the effect of the retention ratio on wage determination. Increased attention to systematic comparison and testing leads to increased convergence of model simulation results or, as second best, increased understanding of the reasons for divergence. Copyright 1989 by John Wiley & Sons, Ltd.

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Publisher Info
Article provided by John Wiley & Sons, Ltd. in its journal Journal of Applied Econometrics.

Volume (Year): 4 (1989)
Issue (Month): 4 (Oct.-Dec.)
Pages: 317-44
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Handle: RePEc:jae:japmet:v:4:y:1989:i:4:p:317-44

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  1. Ingvild Svendsen, 1999. "Female labour participation rates in Norway - trends and cycles," Discussion Papers 253, Research Department of Statistics Norway. [Downloadable!]
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