Macroeconometric modelling and Pakistan's economy. A vector autoregression approach
Date
1992Source Title
Journal of Development Economics
Print ISSN
0304-3878
Volume
38
Issue
2
Pages
353 - 370
Language
English
Type
ArticleItem Usage Stats
200
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277
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Abstract
Recent applications of the Vector Autoregression (VAR) technique pioneered by Sims, Litterman and Doan has become popular in macroeconomic modelling, particularly when knowledge about 'true' structural relations is absent. This study represents the first attempt to apply such a technique to Pakistani data for ten key macroeconomic variables. Unlike some of the earlier studies on Pakistan's economy our empirical results are intuitive and consistent with the predictions of the standard new neoclassical model. More importantly, based on these results, perhaps, one may also shed light on some of the dominant recurring macroeconomic issues of Pakistan's economy. © 1992.
Keywords
Developing countryEmpirical result
Macroeconomic variable
National economy
Simulation model
Vector autoregression
Pakistan