Comparative Properties of Models of the Uk Economy

Abstract

This paper describes the overall properties of six major macroeconomic models, through dynamic multiplier analysis of a number of standard simulation exercises. The models are those of the London Business School (LBS), the National Institute of Economic and Social Research (NIESR), HM Treasury (HMT), the Bank of England (BE), the City University Business School (CUBS) and the Liverpool University Research Group in Macroeconomics (LPL), as deposited with the ESRC Macroeconomic Modelling Bureau in late 1987. The simulations demonstrate the response of the models to changes in key policy instruments and to exogenous shocks; they are conducted, as far as possible, in a consistent manner across the models.