A Pedagogical Note on the Long Run of Macro Economic Models
AbstractThis paper surveys and motivates the reasons for incorporating explicit long run of supply features into applied estimated macro economic models. It defines some basic stability conditions for such models and illustrates elements of long run considerations with reference to a small (22 equation) prototype model which fashions itself after many current models. It also shows that many of the key decisions when setting up the long run extended simulation horizon reduce to a relatively small number of relationships.
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Bibliographic InfoPaper provided by Department of Economics, University of Kent in its series Studies in Economics with number 9807.
Date of creation: Mar 1998
Date of revision:
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Postal: Department of Economics, University of Kent at Canterbury, Canterbury, Kent, CT2 7NP
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Find related papers by JEL classification:
- C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
- C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
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