Modelling the Supply Side of the Seven Major OECD Economies [E-Book] / Dave Turner, Pete Richardson and Sylvie Rauffet
Turner, Dave.
Richardson, Pete. / Rauffet, Sylvie.
Paris : OECD Publishing, 1996
45 p. ; 21 x 29.7cm.
OECD Economics Department Working Papers ; 167
Full Text
If a macroeconometric model is to be useful for policy analyses which go beyond short-term forecasting requirements, particular attention must be paid to the form and consistency of its various components with respect to longer-term equilibria. In particular, long-run properties and ultimate stability of such models with respect to output, employment and inflation depend crucially on the consistency and form of the supply-side specification.This paper presents recent work by the OECD contributing to its INTERLINK world model. It focuses on the specification and estimation of the supply-side aspects of the sub-models for the seven major OECD Member countries. It presents a general analytical framework for the specification of a consistent model of business sector behaviour within a dynamic form which meets both short-term forecasting and longer-term theoretical requirements. Comparative estimation results are reported for individual economies along with simulation results for a ...