@article{Macro-Model:4249,
      recid = {4249},
      author = {Masson, Paul and Rose, David and Selody, Jack},
      title = {Building a Small Macro-Model for Simulation: Some Issues},
      publisher = {Bank of Canada},
      address = {1980},
      pages = {1 online resource (iii, 115 pages)},
      abstract = {The Research Department of the Bank of Canada has decided  to construct a small annual model of the Canadian economy.  This paper presents the reasons for that decision as well  as the methodology of the model-builders. The actual  structure of the model is not described here; instead, we  discuss the relationship of the model to economic theory,  the choice of an estimation strategy and the proper use of  the model in simulation. We thought it useful to define our  preconceptions and biases before proceeding with the  construction of the model, and in that way solicit comments  and advice from other economists at an early stage in our  work. Thus by the very nature of the paper, the views  expressed are tentative and preliminary and the text should  be taken as a discussion paper rather than as a finished  piece. The purpose of the model is not to provide point  forecasts but rather to embody as many theoretical insights  as possible, especially the longer term properties implied  by theory. Keeping the model small will help in ensuring  that the structure is consistent with theory and will allow  application of systems estimation techniques. The result  will, we hope, be a model capable of performing policy  simulations over the medium to long term and of describing  changes in private sector behaviour that result. It is  impossible to give a brief summary of the paper here, but  among the topics discussed are our views on the proper  treatment of expectations, the value of the  'disequilibrium' concept and the problems of aggregation.},
      url = {http://www.oar-rao.bank-banque-canada.ca/record/4249},
      doi = {https://doi.org/10.34989/tr-22},
}