LATEST PUBLICATIONS
DLSU-AKI Policy Brief, Volume VII, No. 17
Mitigating Emissions Associated With the Production of Traded Goods
BRAc RN 2021-01
Shedding Light on Bank Deposits in Philippine Provinces
PB2021-10
Modernizing VAT in the Digital Economy
PB2021-09
Nature-Based Policies Towards Green Recovery: Mitigating the Impacts of Climate Change and Future Disease Outbreaks

LATEST AV MATERIALS
PIDS WB 2021-1104
Assessing the Philippines' Performance in Meeting the ASEAN Economic Community Vision 2025
PIDS WB 2021-1103
Examining The Health Impacts Of The COVID-19 Pandemic In The Philippines
ILS-AVP-01
ILS 30th Anniversary Video
PIDS WB 2021-1102
Evaluating the Pantawid Pamilyang Pilipino Program's Payment System
Publication Detail
DP 2002-09: A Perspective on Macroeconomic and Economy-Wide Quantitative Models of the Philippines: 1990-2002

Criticism against large-scale macroeconometric models built in the tradition of the Cowles Commission approach began to mount in the late 1960s. These misgivings were subsequently reflected in the Lucas critique, Sims critique and disenchantment with the model’s Keynesian foundations. In response, macroeconometric modeling progressed in two parallel ways: one, the improvement of the structure of the traditional models, particularly in terms of specifying the supply side and forward-looking expectations; and two, strengthening or development of alternative techniques, to wit, the LSE approach aided by the advent of cointegration analysis, vector autoregressive (VAR) systems, and dynamic stochastic general equilibrium (DSGE) models. The emergence of computable general equilibrium models can also be considered a response to the dissatisfaction with macroeconometric models. CGE models are based on a well-specified theoretical framework built on optimizing behavior of economic agents and they readily allow the analysis of the impact of policy changes on resource allocation and income distribution. This paper surveys the development of macroeconometric and CGE models in the Philippines during the period 1990-2002, primarily in terms of their structure and applications. Many of the recent developments in macroeconometric modeling have been incorporated in Philippine models. However, Philippine CGE models have hardly progressed beyond the standard neoclassical framework. Over time, there has been convergence in these two types of quantitative models: CGE models have increasingly used econometric estimates obtained from time-series data while macroeconometric models have been applied to monitor social outcomes like poverty and income distribution. These quantitative tools have become an integral part of policy analysis in the Philippines.

Philippine Institute for Development Studies
Authors Keywords
Yap, Josef T.; macroeconometric model; computable general equilibrium (CGE); Error Correction Model; cointegration analysis; macro structuralist model; social outcomes;
Download PDF Number of Downloads
Published in 2002 and available in the PIDS Library or Downloaded 834 times since November 25, 2011
×
Please let us know your reason for downloading this publication. May we also ask you to provide additional information that will help us serve you better? Rest assured that your answers will not be shared with any outside parties. It will take you only two minutes to complete the survey. You will answer the profile questions only once as long as you enter the same email address. Thank you.


To use as reference:
If others, (Please specify):
Name: (optional)
Email: (required, but will not display; please use the same email address when downloading another publication so that the profile questions will not appear)
Age:
Gender:
If Prefer to self-describe, please specify:
Level of Education:
Occupation:
If employed either part-time or full-time, name of office:
If others, (Please specify):
Would you like to receive the SERP-P UPDATES e-newsletter? Yes No
Use the space below if you have any comment about this publication or SERP-P knowledge resources in general.