A Review of Macroeconometric Modeling Practices

Abstract

This paper presents a general historical survey of macroeconometric modeling, which includes objectives, historic background and major types of macroeconometric modeling. Historic background includes beginning of macroeconometric modeling, advancements, criticisms and responses during the course of time. Major types of macroeconomic modeling and alternatives to the basic methodology of Cowles Commission approach along with their drawbacks are discussed. At the end, review of some available macroeconometric models is presented in a tabular survey.