A Comparison of Alternative Estimators of Macro-Economic Model of Ethiopia
2009
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Details
Title
A Comparison of Alternative Estimators of Macro-Economic Model of Ethiopia
Keywords
During the past 5 decades a number of econometric techniques were developed
and applied to a variety of econometric relationships to deal with the problem of
single equation estimation as well as simultaneous equations bias. These days; such methods have very wide applications especially in more developed
countries. However; there has been very little attempt to apply these techniques
to empirical relationships describing the macro-economic sector of developing
countries in general and Ethiopia in particular. In this study; a small macroeconometric
model of Ethiopia is used to identify the best estimation techniques
that will produce accurate forecast of the economy of Ethiopia. Six econometric
methods were considered. The prediction accuracy of these estimators was
examined using time series data covering the period 1970 to 2004. The results
indicated that considerable gain in forecasting accuracy can be achieved by
using 2SLSAUT01 and 2SLSAUT02 than simple ordinary least squares or two
stage least squares to estimate macro-economic models.
Subject(s)
Issue Date
2009-12
Publication Type
Journal Article
DOI and Other Identifiers
10.22004/ag.econ.249685
ISSN 1993-3681 (Other)
ISSN 1993-3681 (Other)
Record Identifier
https://ageconsearch.umn.edu/record/249685
PURL Identifier
http://purl.umn.edu/249685
Published in
Ethiopian Journal of Economics
Volume
18
Issue
1
Page Range
71 - 100
Total Pages
116
JEL Codes
Econometric Techniques
Econometric Models
Ethiopia
Prediction
Econometric Models
Ethiopia
Prediction
Series Statement
ETHIOPIAN JOURNAL OF ECONOMICS
VOLUME XVIII NUMBER 1 April 2009
VOLUME XVIII NUMBER 1 April 2009
Record Appears in
Ethiopian Economics Association > Ethiopian Journal of Economics