Understanding Macroeconomic Models: Structural Sensitivity Analysis of a Medium-Sized Model

Ullrich Heilemann and Heinz Josef Munch

Computer Science in Economics & Management, 1992, vol. 5, issue 3, 247-70

Abstract: To get a better impression of the quantitative relationships in/of the various channels of macroeconomic models, E. Kuh, J. Neese, and P. Hollinger (1982, 1985) introduced the technique of systematic parameter perturbation. This technique is applied to the RWI-business cycle model, a medium sized (41 stochastic equations, 86 definitions), quarterly macroeconometric model for the FRG. The evaluation of the results concentrates on (1) the sensitivity of the model to parameter perturbations in general, and to (2) the sensitivity of policy goal variables in particular. The findings show that in the model the number of important within-block and between-block relationships is much smaller than suggested by usual incidence matrices, providing additional evidence for H. Simon's (1981) "empty world hypothesis." Citation Copyright 1992 by Kluwer Academic Publishers.

Date: 1992
References: Add references at CitEc
Citations: View citations in EconPapers (2)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:csecmg:v:5:y:1992:i:3:p:247-70

Ordering information: This journal article can be ordered from
http://www.springer. ... ry/journal/10614/PS2

Access Statistics for this article

Computer Science in Economics & Management is currently edited by Hans Amman

More articles in Computer Science in Economics & Management from Kluwer, Society for Computational Economics Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().