TY - JOUR
T1 - The Liverpool macroeconomic model of the United Kingdom
AU - Minford, Patrick
AU - Marwaha, Satwant
AU - Matthews, Kent
AU - Sprague, Alison
N1 - Funding Information:
Work on the Liverpool Model has buen proceeding rince 1976 and thanks are due to many others who hava as&tad in its development, in particular Michael Brech, Georga Brannan, Christo loan-nidis, and most of all to David Peel who has been a constant source of illuminating criticism and idaaa.W ith his permission we have used material from Chap ter 11 of Minford and Peel, [12J. The financial support of the SSRC is gratefulh/ acknowladgad.
PY - 1984/1
Y1 - 1984/1
N2 - The paper describes the Liverpool Model, a rational expectations model of the UK economy used for forecasting since March 1980. The model is of the 'new classical' type, in that all markets clear; in the labour market, there is a union sector with one-year nominal wage contracts but the non-union sector clears excess demands. Equilibrium (or 'natural rate') values of output, employment, real wages, etc are endogenously determined. In- and out-of-sample errors, a full set of simulations, and a complete listing are included. The interim experience of the model as a test bed for rational expectations methods is 'far from discouraging'.
AB - The paper describes the Liverpool Model, a rational expectations model of the UK economy used for forecasting since March 1980. The model is of the 'new classical' type, in that all markets clear; in the labour market, there is a union sector with one-year nominal wage contracts but the non-union sector clears excess demands. Equilibrium (or 'natural rate') values of output, employment, real wages, etc are endogenously determined. In- and out-of-sample errors, a full set of simulations, and a complete listing are included. The interim experience of the model as a test bed for rational expectations methods is 'far from discouraging'.
KW - Macroeconomic models
KW - Rational expectations
KW - UK
UR - http://www.scopus.com/inward/record.url?scp=0021581069&partnerID=8YFLogxK
U2 - 10.1016/0264-9993(84)90010-5
DO - 10.1016/0264-9993(84)90010-5
M3 - Article
AN - SCOPUS:0021581069
SN - 0264-9993
VL - 1
SP - 24
EP - 62
JO - Economic Modelling
JF - Economic Modelling
IS - 1
ER -