GEI Projects

2. GLOBAL ECONOMIC MODEL COMPARISON PROJECT

Principal Researchers

Professor KEN WALLIS
Dr PETER SMITH
ESRC Macroeconomic Modelling Bureau
University of Warwick


Contact

Liz Thompson
ESRC Macroeconomic Modelling Bureau
University of Warwick
Coventry CV4 7AL

Tel: 01203 523276
Fax: 01203 523032
Email: mbraq@csv.warwick.ac.uk

Duration of Research

1 July 1994 – 30 June 1996

AIMS AND OBJECTIVES

The research will identify the sources of disagreement among leading multi-country macroeconomic models about the global economic response to a range of institutional policy questions and will seek to resolve these differences. In raising the level of understanding of the properties of these models, the project will be able to provide an improved qualitative and quantitative assessment of the consequences of revised institutional arrangements, in particular of macroeconomic policy coordination.

STUDY DESIGN

The project will take deposit of, or be provided with access to, four leading global macroeconomic models which are widely used in public policy-making and private sector economic analysis. Computer-intensive techniques for comparative model analysis, including standardized simulations of policy and other external shocks, will be used to elucidate model properties. Partial simulations will identify the sources of important cross-model differences. This detailed analysis will then sustain an analysis of policy design and revised institutional arrangements.

POLICY IMPLICATIONS

The research will allow a better qualitative and quantitative model-based assessment of macroeconomic policy choices for the world economy.