1 About the BASMOD home page

 

As mentioned, the BASMOD home page can be found in

 

X:\BM\BASMOD\index.htm

 

and the page below appears. Here, I briefly mention what can be found in the opening page and how the home page is organised.

 

 

 

 

On the Introduction pages you get information about the basics of BASMOD (Bengt Assarsson’s Swedish MODel). In the upper frame of the home page you find the links

 

Intro-duction

Down-load

Model

struc-ture

Estimated

equations

Variables

News

User

manual

Further

informa

-tion

Link to AMOD

page

Evalu-ation

Printable

docu-

ments

Home

 

Clicking on the links in the upper frame makes new menus appear in the left frame. Results appear in the main frame in the center of the home page. Moving from left to right in the upper frame is more or less as moving from general to specific.

 

The Introduction gives general information about the organization of the home page and the model and how to practically use it.

 

The Download link informs you about how to download BASMOD to the disk from which you prefer to run the model.

 

The Model structure link gives detailed information about the model’s structure.

 

The link Estimated equations gives information about every estimated equation in the model. It is easy to find the specific equation and get some information about parameters, standard error or equation, etc.

 

There is also a News link where you can find information about the latest updates.

 

Information about how to use the model is contained in the User manual link. There you find information on how to download the Eviews files from the S-disk on Sveriges Riksbank’s server to your disk of preference. Before becoming an experienced user it is recommendable to have the BASMOD home page loaded in your browser simultaneously with running the model in Eviews.

 

The Further information link contains various kinds of information which may change over time.

 

BASMOD is a relatively large and detailed model. For users preferring a smaller and more comprehensible model AMOD (ArbetsmarknadsMODell) might be an alternative. A description of the smaller model is found in the Link to AMOD page. AMOD is a Wage-Setting/Price-Setting model with endogenous technical progress in the same spirit as BASMOD. It is primarily developed for the analysis of the labour market and the forecasting of labor market variables. A brief description of AMOD is also given in Appendix 3 in this document.

 

BASMOD is continuously evaluated with respect to simulations and forecasts. In the Evaluation link you can find information about different simulations performed with the model and other evaluations related to the theoretical consistency of the model. You can also discover forecast evaluations both with respect to within-sample prediction (equation fit) and out-of-sample predictions based both on a simulation basis and on historical forecasts done in the forecasting process in the Riksbank. Results from evaluations are also given in Chapter 4 in this document.

 

In addition to finding information through browsing the present home page you can consult the printed documents on different parts of the model or the complete model documentation. For printouts, go to the Printable documents.

 

You now should be able to guide yourself through the web site to gather the necessary information about the model.

 

 

2 How to download the model

 

BASMOD is downloaded by copying the appropriate Eviews workfile from APP’s S: disc. Do the following procedure:

 

Go to

 

S:\APP\APP Modellenheten\BASMOD\BASE\0402\basmod0402.wf1

 

and find the version of the model used for the Inflation Report at the appropriate date (model for the second Inflation Report in this example).

 

The corresponding AMOD can (possibly) be found under

 

S:\APP\Modellenheten\AMOD\BASE\0402\amod0402.wf1

 

Make a copy of the downloaded file - e,g, My_basmod0402.wf1 – to a suitable directory and use the new file for your work.

 

All Eviews objects are stored in one single sheet in the workfile. You can open the model by clicking on Model or by inputting Show Model in the interactive command window. You can then verify that the model works properly by following the following steps:

 

  1. Click on the Solve button.
  2. Click on the Solver sheet.
  3. Choose Previous period’s solution
  4. Choose Constant growth rate
  5. Click OK

 

The model now should solve for Scenario X, which usually is Scenario 1. To view the solution for different variables, e.g. click on y_1 which gives you the solution for GDP in Scenario 1.