In the two previous chapters we have dealt with what are probably the oldest and most important applications of KK systems — forecasting and counter-factual analysis. In this chapter we turn to a third application — one which has developed rapidly in the last ten years and which seems to have great potential for further development. We refer to policy evaluation.
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References and further reading
- Chow, G. C. (1981) Econometric Analysis by Control Methods, Wiley, New York.Google Scholar
- Cooper, J. P. and Fischer, S. (1972b) ‘Stochastic Simulation of Monetary Rules in Two Macroeconometric Models’, Journal of the American Statistical Association, vol. 67, pp. 750–60.Google Scholar
- Craine, R. A., Havenner, A. and Berry, J. (1978) ‘Fixed Rules vs Activism in the Conduct of Monetary Policy’, American Economic Review, vol. 68, pp. 769–83.Google Scholar
- Hirsch, A., Hymans, H. and Shapiro, H. T. (1978) ‘Econometric Review of Alternative Fiscal and Monetary Policies, 1971–75’, Review of Economics and Statistics, vol. 60, pp. 334–45.Google Scholar
- Perry, G. L. (1975) ‘Policy Alternatives for 1974’, Brookings Papers on Economic Activity, no. 1, pp. 222–35.Google Scholar
- Spencer, G. H. and Grimes, A. (1980) ‘On the Stability of Alternative Policy Rules within a Model of the New Zealand Economy’, in G. H. Spencer (ed.), Experiments with a Core Model of the New Zealand Economy, Research Paper No. 29, Reserve Bank of New Zealand, Wellington.Google Scholar