Scandinavian Working Papers in Economics
HomeAboutSeriesSubject/JEL codesAdvanced Search
Bank of Finland Research Discussion Papers, Bank of Finland

No 10/1998:
The BOF5 Macroeconomic Model of Finland, Structure and Equations

Alpo Willman, Mika Kortelainen (), Hanna-Leena Männistö () and Mika Tujula

Abstract: This report is the basic documentation of the present (fifth) version of the Bank of Finland macroeconomic model, BOF5, built for policy simulation and forecasting. In constructing the model, consistent treatment of expectations is emphasized. Following current theoretical literature, intertemporal optimization with rational expectations is taken as the starting point, and Euler equations are applied in the estimation of the key behavioural equations. Consistent treatment of technology on the supply side has been another important aim. We illustrate the properties of the model with some simulation experiments. A complete list of equations and an outline of the derivation of the key equations are presented. We also show how forward-looking equations have been transformed to facilitate simulation under alternative assumptions concerning the formation of expectations.

Keywords: macroeconomic models; Finland; econometric modelling; policy simulations; expectations; Euler equations; (follow links to similar papers)

170 pages, June 3, 1998

Before downloading any of the electronic versions below you should read our statement on copyright.
Download GhostScript for viewing Postscript files and the Acrobat Reader for viewing and printing pdf files.

Full text versions of the paper:

DP_10_1998.pdf    PDF-file
Download Statistics

Questions (including download problems) about the papers in this series should be directed to Minna Nyman ()
Report other problems with accessing this service to Sune Karlsson () or Helena Lundin ().

Programing by
Design by Joachim Ekebom

Handle: RePEc:hhs:bofrdp:1998_010 This page was generated on 2014-12-14 19:21:26