Forecasting and Macroeconomic Modeling
INTRODUCTION
Econometric modelling and forecasting have become some of the most important tools for policy makers of the day in quantifying the impacts of various policies on their economies. To tackle practical problems, policy makers and business managers need to build empirical models. In developing countries, however, when applying those models for various analysis, they have to overcome various problems that do not exist in developed economies. One of the frequently observed problems is the lack of data. This fact not only restricts the scope of econometric analysis, but also requires highly developed skills for extracting meaningful quantitative information from the limited available data.
Learning Objectives
- Understand the need for theory in Macroeconomic Modeling
- Understand the interactions between Macroeconomic Blocks
- Describe macroeconomic blocks
- Estimate the equations in the Macroeconomic Blocks
- Diagnose time series data
- Build a prototype model and
- Understand other forecasting models