MODAG A a medium term annual macroeconomic model of the Norwegian economy

Abstract

This paper presents the structure and main empirical characteristics of MODAG A, a medium term annual macroeconomic model of the Norwegian economy. The model has an input-output structure with 41 commodities and 33 production sectors and is closely linked to the national accounting system. The version presented in this paper models only the real sector of the economy, and its structure is very much in the Klein-Tinbergen tradition with elements from the Scandinavian model of inflation. The main purposes of the model are the preparation of medium term economic projections and policy studies in the Ministry of Finance and in the Central Bureau of Statistics.