Purpose
2003-10-08
Purpose
The purpose
with BASMOD is mainly to be a tool in the forecasting
activity of a serious forecasting organisation, like the APP. The model should
be an alternative to the Excel sheet so often used, “arket”,
and offer an opportunity to forecast consistently the resource balance and
other variables which belong to a standard macroeconomic forecasting
environment. The model has initially been developed by one single person but
the purpose is that the model should be used and developed by many, i.e. those
engaged in the forecasting activity in APP. Therefore, the model has been
programmed in Eviews, the econometric package most
commonly used in APP. Since the model is used in the forecasting activity its
parameters have been estimated on historical data on a quarterly basis. Since
it is a substitute for the sheet, “arket”, the model
is big and has more than 100 equations, of which approximately 25 are
stochastic.