Freia and Kompas, The Central Planning Bureau's new generation of macro-economic policy models: A review article

Abstract

On the eve of the 50th anniversary of macro-economic model building in the Netherlands, the Central Planning Bureau introduced two new models for policy analysis, the annual model FREIA and the quarterly model KOMPAS. The main novelty of these models as compared to their predecessors is a fully fledged submodel of the financial sector. This review article highlights some features of both models and compares their properties with those of other models and with results from the literature. The models have been explicitly constructed for practical use and therefore do not reflect any theoretical approach in particular.