A model of adjustment and growth: An empirical analysis
Abstractthe simplicity that makes a model more tractable from an operational standpoint may have several drawbacks as a result of the necessarily restrictive assumptions it employs. This paper assesses the empirically the trade-off between its simplifying assumptions and its ability to fit reality. This trade-off can be assessed by applying the model to a variety of countries. For each country, the following questions are asked: (1) Are the key parameters of the model stable? (2) How sensitive are the policy multipliers to these parameter estimates-that is, how robust are the policy implications? and (3) Are some target variables more vulnerable to forecast errors than others? This paper examines these three questions for a diverse sample of seven capital importing developing countries and attempts to reach some conclusions about the usefulness of the model to help in designing policy.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 13233.
Date of creation: 1991
Date of revision:
IMF program money demand growth balance of payments;
Other versions of this item:
- Carmen M. Reinhart, 1990. "A Model of Adjustment and Growth: An Empirical Analysis," IMF Staff Papers, Palgrave Macmillan, vol. 37(1), pages 168-182, March.
- Reinhart, Carmen, 1989. "A model of adjustment and growth: An empirical analysis," MPRA Paper 14101, University Library of Munich, Germany.
- E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
- F2 - International Economics - - International Factor Movements and International Business
- E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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13655, University Library of Munich, Germany.
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- Q. Farooq Akram, 2010. "Policy analysis in real time using IMF's monetary model," Working Paper 2010/10, Norges Bank.
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