Repository of macro models
This repository contains descriptions of macro-models which relate to papers published or forthcoming in Economic Modelling
The Bank of Finland macroeconomic model BOF5
Title of Paper: The BOF5 macroeconomic model of Finland, structure and dynamic microfoundations
Authors:
Alpo Willman, European Central Bank, Frankfurt, Germany
Mika Kortelainen, Bank of Finland, Helsinki, Finland
Hanna-Leena Männistö, Bank of Finland, Helsinki, Finland
Mika Tujula, European Central Bank, Frankfurt, Germany
Vol./Issue No.: 17/2, pp. 275-303
Short description: The Bank of Finland macroeconomic model is a medium-sized quarterly model of the Finnish economy designed and used for policy analysis and forecasting. In constructing the present (fifth) version of the model, BOF5, consistent treatment of expectations is emphasised. Following current theoretical literature, intertemporal optimisation 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. Forward-looking equations have been transformed to facilitate simulation under alternative assumptions concerning the formation of expectations.
JEL classification: C50; E17
Keywords: Macroeconomic models; Finland; Econometric modelling; Expectations; Euler equations
Country: Finland
Linkage address: http://www.bof.fi/env/eng/ju/bof5dp.stm
Disclaimer: Responsibility for the full model structures of the models in this repository rests solely with the authors.