Twenty-five years of modelling the Irish economy - retrospect and prospect

Abstract

Macroeconometric models provide a simultaneous and endogenous empirical framework for the evaluation of policy alternatives and the generation of forecasts. As such they can play a significant role in policy research and the broader policy—making process. To date, however, there has been little or no utilisation of this instrument in the wider policy process in Ireland. This is despite the fact that at least twenty—one such models have been constructed during the period under review. The purpose of this paper is to survey the past record of model building in Ireland and consider some aspects for future development.