Sitting on my veranda I wonder how I can tell you about how to build a macro model. I’m sure you have a spreadsheet. That’s the most important part. You have data and you want to start. What do you do?
Building a macro model in 10 steps
In this series of articles I will talk about how you build a macro economic model from scratch. And I will show you a special macro model, which will help you analyze your economy, calculate the effects of policy scenarios and help you understand where your economy is going. I will discuss how to build a macro economic model for a small open economy with a tourism sector. Because those economies I know best. In another article I already showed you how a macro model can help you show your problems. Here you see some benefits of using a macro model in your analyses.