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Canadian Policy Analysis Model: CPAM

Author

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  • Richard Black
  • David Rose

Abstract

This paper documents the structure and properties of the Canadian Policy Analysis Model (CPAM). CPAM is designed to provide a reasonably complete representation of the Canadian macro economy. It is a one-domestic-good, small-open-economy model, which features an endogenous supply side, behavioural equations for the principal components of demand, forward-looking expectations, and reaction functions for both the monetary and fiscal authorities. The model has an explicit steady state and is dynamically stable over a wide range of disturbances. CPAM is similar in many ways to the Bank of Canada's Quarterly Projection Model (QPM), and it has been calibrated to reflect QPM's dynamic properties in deterministic simulations. CPAM is smaller, however, and has been configured to simulate much faster than QPM so that stochastic simulations on a large scale are feasible.

Suggested Citation

  • Richard Black & David Rose, 1997. "Canadian Policy Analysis Model: CPAM," Staff Working Papers 97-16, Bank of Canada.
    • Handle: RePEc:bca:bocawp:97-16
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    References listed on IDEAS

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    Cited by:

    1. Robert Amano & Donald Coletti & Tiff Macklem, 1998. "Monetary rules when economic behaviour changes," Proceedings, Federal Reserve Bank of San Francisco, issue Mar.
    2. Benoît Carmichael & Sikoro Keita & Lucie Samson, 1999. "Liquidity Contraints and Business Cycles in Developing Economies," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 2(2), pages 370-402, April.
    3. Ghironi, Fabio, 2008. "The role of net foreign assets in a New Keynesian small open economy model," Journal of Economic Dynamics and Control, Elsevier, vol. 32(6), pages 1780-1811, June.
    4. Ullrich, Katrin, 2000. "Die Konsumfunktion in makroökonometrischen Modellen," IWH Discussion Papers 117/2000, Halle Institute for Economic Research (IWH).
    5. Malick Souare, 2003. "Macroeconomic Implications of Population Aging and Public Pensions," Social and Economic Dimensions of an Aging Population Research Papers 100, McMaster University.
    6. Eiteljörge, Uwe, 2000. "Der Außenhandel in makroökonometrischen Modellen," IWH Discussion Papers 115/2000, Halle Institute for Economic Research (IWH).
    7. Koichiro Kamada & Ichiro Muto, 2000. "Forward-looking Models and Monetary Policy in Japan," Bank of Japan Working Paper Series Research and Statistics D, Bank of Japan.
    8. John C. Robertson, 2000. "Central bank forecasting: an international comparison," Economic Review, Federal Reserve Bank of Atlanta, vol. 85(Q2), pages 21-32.

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    More about this item

    Keywords

    Economic models;

    JEL classification:

    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
    • E17 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Forecasting and Simulation: Models and Applications

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