In search of a macroeconometric model that is suitable for the Singapore economy

The use of macroeconometric modelling has been of growing importance in Singapore since the last economic recession in 1986. Government institutions have found them useful in policy making and target setting. Businessmen and managers will find macroeconometric modelling useful in time to come, especially when more comprehensive data are available for analysis and reliable forecasting. This academic exercise attempts to examine and compare the two most recent and comprehensible macroeconometric models available, in order to find one that is most suitable for the forecasting, analysis, and understanding by non-academics. In-period and ex-ante analyses are performed to assess the ability of the models to reflect the trend of the Singapore economy. In addition, an attempt is also made to determine the relative usefulness of the variables used by the two models.ACCOUNTANC