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Modelling Activities in Europe. Macroeconometric Models of the United Kingdom

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Macroeconometric Models

Part of the book series: Advanced Studies in Theoretical and Applied Econometrics ((ASTA,volume 47))

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Abstract

The large multisectoral, annual model was built at the Cambridge University by a team lead by R. Stone in the 60s. It became the core of the multisectoral model of the UK run by Cambridge Econometries, being used in many policy exercises.

Several quarterly models were constructed in the late 60s and 70s by LBS and Liverpool University and research institutions NIESR, H.M. Treasury and Bank of England. They were used in systematic forecasting and various policy simulations. Originally, they were demand determined. In the late 70s they introduced the neoclassical components, developing the supply side. Several of them included rational expectations. Many novelties were developed, including the Phillips curve approach, substituted by the approach based on the negotiations in specifying the wage equations.

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Notes

  1. 1.

    The description of this period in the development of macroeconometric activities rests on the papers published in Bodkin et al. (1991) and Whitney (1994).

  2. 2.

    More in Suchecki (2006).

  3. 3.

    In the early 1970s, an attempt was made at the Southampton University to construct a multi-sectoral, quarterly model. The project was discontinued in the mid-1970s and was never completed.

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  1. Institute of Econometrics, University of Łódź, Rewolucji 1905 r. 41, Łódź, 90-214, Poland

    Władysław Welfe

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Welfe, W. (2013). Modelling Activities in Europe. Macroeconometric Models of the United Kingdom. In: Macroeconometric Models. Advanced Studies in Theoretical and Applied Econometrics, vol 47. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-34468-8_4

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