The World Bank Macro-Fiscal Model Technical Description
This paper outlines the structure and economic foundation of the World Bank's macroeconomic and fiscal model (MFMod). MFMod consists of individual country models for 181 countries. The models are used by country economists within the World Ban...
| Main Authors: | , , , , |
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| Language: | English |
| Published: |
World Bank, Washington, DC
2019
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/294311565103938951/The-World-Bank-Macro-Fiscal-Model-Technical-Description http://hdl.handle.net/10986/32217 |
| Summary: | This paper outlines the structure and
economic foundation of the World Bank's macroeconomic
and fiscal model (MFMod). MFMod consists of individual
country models for 181 countries. The models are used by
country economists within the World Bank's
Macroeconomics, Trade and Investment Global Practice to (i)
generate country forecasts and (ii) simulate various
policies. Each model has a similar structure and functional
form, with variation reflecting data availability and
economic specialization (notably for oil exporters).
Although the functional forms are similar, the parameters
are country specific and estimated at the country level.
Forecasts across countries are live-linked, with the export
market growth of each country calculated as a trade-weighted
average of imports of each of its trading partners.
Remittance inflows and outflows are balanced across
countries through a similar mechanism. Other cross-country
linkages come through the real effective exchange rate and
export and import prices, which are a function of world
commodity prices and local cost considerations. |
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