Comparative Performance of U.S. Econometric Models

by Lawrence R. Klein

* Lawrence Klein won the Nobel Prize in Economics for his original work in developing models One of the most important, and visible, things economists do is to forecast what will happen in the economy in the future. Each year a number of different groups in the US use their own econometric models to forecast what will happen to the economy in the coming year. Some forecasts are more accurate than others. This book consists of chapters by distinguished economists comparing the different models now being used. It is organized topically rather than by model. The contributors include: Roger Brimmer, Ray Fair, Bert Hickman, F. Gerard Adams, and Albert Ando. Lawrence Klein provides an introduction to the volume.

Hardcover

First published January 1, 1991

Reviews

[Richard Mancuso · Rating 5 out of 5]

Fascinating read for those interested in the diversity of macroeconometric models and comparisons.
Really interesting approaches to finding out what's "under the hood" in a diverse array of US econometric models. While the models studied are not of the most modern vintage/approaches, Klein's thorough examination of the properties of each model should serve as a template for studying the properties of a macroeconometric model.

What’s particularly interesting about this kind of comparison – and Klein’s approach is more detailed than other Canadian model comparisons I’ve read – is how different the reactions can be among models to standard fiscal or monetary shocks.