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Appropriate Macroeconomic Model Support for the Ministry of Finance and the National Institute of Economic Research: A Pilot Study

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Abstract

We analyse model choices of various international institutions and find that the majority of the studied central banks have chosen so-called DSGE-models. Ministry of finances have chosen to continue using so-called Semi-Structural Models (SSM) while international organisations such as the IMF and the OECD have “a suite of models” including both DSGE and SSM. Based on these international experiences and the specific institutional set up in Sweden we list a number of criteria and rank different modelling strategies. We propose that a DSGE-model for both forecast and policy analysis including a rich modelling of fiscal policy would be appropriate for the Ministry of finance and the National Institute of Economic Research in Sweden.

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  • Hjelm, Göran & Bornevall, Helena & Fromlet, Pia & Nilsson, Jonny & Stockhammar , Pär & Wiberg, Magnus, 2015. "Appropriate Macroeconomic Model Support for the Ministry of Finance and the National Institute of Economic Research: A Pilot Study," Working Papers 137, National Institute of Economic Research.
    • Handle: RePEc:hhs:nierwp:0137
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    1. Fabio Bacchini & Cristina Brandimarte & Piero Crivelli & Roberta De Santis & Marco Fioramanti & Alessandro Girardi & Roberto Golinelli & Cecilia Jona-Lasinio & Massimo Mancini & Carmine Pappalardo & D, 2013. "Building the core of the Istat system of models for forecasting the Italian economy: MeMo-It," Rivista di statistica ufficiale, ISTAT - Italian National Institute of Statistics - (Rome, ITALY), vol. 15(1), pages 17-45.
    2. Mr. Derek Anderson & Mr. Benjamin L Hunt & Mika Kortelainen & Mr. Michael Kumhof & Mr. Douglas Laxton & Mr. Dirk V Muir & Susanna Mursula & Stephen Snudden, 2013. "Getting to Know GIMF: The Simulation Properties of the Global Integrated Monetary and Fiscal Model," IMF Working Papers 2013/055, International Monetary Fund.
    3. Adolfson, Malin & Laséen, Stefan & Lindé, Jesper & Villani, Mattias, 2008. "Evaluating an estimated new Keynesian small open economy model," Journal of Economic Dynamics and Control, Elsevier, vol. 32(8), pages 2690-2721, August.
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    Cited by:

    1. Lehmus, Markku, 2018. "ETLA macro model for forecasting and policy simulations," Economic Modelling, Elsevier, vol. 74(C), pages 142-166.

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    More about this item

    Keywords

    Macroeconomic modelling; model criteria; forecast; policy analysis; semi-structural models; DSGE; BVAR; SVAR; VAR;
    All these keywords.

    JEL classification:

    • E00 - Macroeconomics and Monetary Economics - - General - - - General

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