Structural Macro-Econometric Modelling in a Policy Environment

Release date
01/12/2009
Reference
DP2009/16
Authors
Martin Fukac; Adrian Pagan
In this paper we review the evolution of macroeconomic modelling in a policy environment that took place over the past sixty years. We identify and characterise four generations of macro models. Particular attention is paid to the fourth generation – dynamic stochastic general equilibrium models. We discuss some of the problems in how these models are implemented and quantified.