The Empirical Foundation of MAKRO


The present paper describes the empirical methodology chosen to appropriately reflect the properties and specific requirements pertaining to the model.


The intended use of MAKRO for medium to long-term projections, as well as impact analyses of macroeconomic policy initiatives, necessitates firstly that the model can aptly analyze the economy’s convergence to underlying structural levels. It therefore requires empirically and theoretically sound short-term properties.