Specification of KK Systems

  • D. W. Challen
  • A. J. Hagger


The purpose of this and the following three chapters is to consider in some detail the construction of modern KK macroeconometric systems. Once a KK system has been constructed it normally goes through a lengthy process of validation and is then put to work in a variety of ways. Validation of KK systems will be dealt with in Part III and their applications in Part IV.


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References and further reading

  1. Bank Of Canada (1976) The Equations of RDX2 Revised and Estimated to 4Q72, Bank of Canada Technical Report 5, Ottawa.Google Scholar
  2. Bank Of Canada (1977) Sectoral Analysis of RDX2 Estimated to 4Q72, Bank of Canada Technical Report 6, Ottawa.Google Scholar
  3. Bank Of England (1979) Bank of England Model of the UK Economy, Discussion Paper No. 5, London.Google Scholar
  4. Brainard, W.C. and Tobin, J. (1968) ‘Pitfalls in Financial Model Building’, American Economic Review, vol. 58, pp. 92–122.Google Scholar
  5. Carlson, J.A. and Parkin, M. (1975) ‘Inflation Expectations’, Economica, vol. 42, pp. 123–38.CrossRefGoogle Scholar
  6. Department Of The Treasury (1981) The NIF-10 Model of the Australian Economy, Australian Government Publishing Service, Canberra.Google Scholar
  7. HM Treasury (1980) Macroeconomic Model Equation and Variable Listing (December 1980 Version), London.Google Scholar
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  9. London Business School (1977) The London Business School Quarterly Econometric Model of the United Kingdom Economy, London.Google Scholar
  10. Minford, A.P. (1980) ‘A Rational Expectations Model of the United Kingdom Under Fixed and Floating Exchange Rates’, in K. Brunner and A.H. Meitzer (eds), On the State of Macro-Economics, North-Holland, Amsterdam.Google Scholar
  11. Parkin, J.M. (1970) ‘Discount House Portfolio and Debt Selection’, Review of Economic Studies, vol. 37, pp. 469–97.CrossRefGoogle Scholar
  12. Phillips, A.W. (1958) ‘The Relation Between Unemployment and the Rate of Change of Money Wage Rates in the United Kingdom, 1861–1957’, Economica, vol. 25, pp. 283–99.Google Scholar
  13. Tobin, J. (1969) ‘A General Equilibrium Approach to Monetary Theory’, Journal of Money, Credit and Banking, vol. 1, pp. 15–29.CrossRefGoogle Scholar

Copyright information

© D.W. Challen and A.J. Hagger 1983

Authors and Affiliations

  • D. W. Challen
  • A. J. Hagger

There are no affiliations available

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