Malaysia Model II is an updated version of the model presented in the Conference on Econometric Models of Asian LINKS. Data have been updated to 1989 and the model structure has been expanded to clarify government and external sectors. Various minor changes can be found in this new model. Interest and exchange rates are treated explicitly and the generalized least squares method is used to correct serious serial correlation. The basic structure of the model, however, remains the same as before. Basic policy simulations are performed to demonstrate the model’s performance.


Money Supply Money Demand Monetary Shock Policy Money Balance Policy Simulation 
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  1. [1]
    Abe, S. (1985) ”Malaysia Model,” in S. Ichimura and M. Ezaki eds., Econometric Models of Asian Link, Springer-Verlag, TokyoGoogle Scholar
  2. [2]
    Cheong, K. C. (1976) ”A Macroeconomic Model for West Malaysia, 1948–1968,” The Developing Economies, vol.14, No.1, MarchGoogle Scholar
  3. [3]
    Ministry of Finance of Malaysia, Economic Reports, various issuesGoogle Scholar
  4. [4]
    Semudram, M. (1982) ”A Macromodel of the Malaysian Economy: 1959–77,” The Developing Economies, vol.20, No.2, JuneGoogle Scholar

Copyright information

© Springer-Verlag Tokyo 1994

Authors and Affiliations

  • Shigeyuki Abe
    • 1
  1. 1.Kobe UniversityJapan

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