THE ECONOMETRICS OF MACROECONOMIC MODELLING

Macroeconometric modelling is one of the ‘big’ projects in economics, dating back to Tinbergen and Frisch. This introductory chapter first discusses the state of the project. We advocate the view that, despite some
noteworthy setbacks, the development towards more widespread use of econometric models, is going to continue. However, models change as research progresses, as the economy develops, and as the demand and needs of model users change. We point to evidence of this kind of adaptive changes going on in current day macroeconometric models. We then discuss the aspects of the macroeconometric modelling project that we have contributed to in our own research, and where in the book the different dimensions and issues are presented.