Comparison of NIESR and Liverpool Model Errors: A Note

Abstract

In the Review of February 1981 the NIESR Model (hereafter NM) errors for 1972-80 for GDP and inflation were juxtaposed with the Liverpool Model (hereafter LM) errors reported in Minford (1980a) and other references. It was stated that this was a ‘direct comparison’. It was also stated that my comparison of the LM errors with the actual forecast errors made by NIESR ‘was not a proper one’. The object of this note is (a) to deny the first statement and (b) with respect to the second, clarify the sense in which my comparison (Minford 1980a) was indeed proper.