Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/82354 
Year of Publication: 
2004
Series/Report no.: 
Danmarks Nationalbank Working Papers No. 21
Publisher: 
Danmarks Nationalbank, Copenhagen
Abstract: 
We investigate a switch from fixed-weighted national accounts data to chain-type data in the quarterly macroeconometric model Mona. As in other countries the idea behind this change in the national accounts data has been to reduce the substitution bias, which has grown with the amount of high-technology goods with a weak price development deviating from the average. In line with Lasky (1998) we demonstrate that the use of the chain index can also reduce some of the typical aggregation problems in macro econometric models based on traditional fixed-weight relations. Chain-type national accounts data are not perfect as e.g. their lack of additivity makes them more complex to work with. We demonstrate that also the lack of reversibility in the chain index may complicate some model results by leading to permanent effects from temporary chocks. It is not clear a priori if a switch to chain weights in the definitional relations on balance improve the model.
Subjects: 
Chain index
National Accounts
Macro model Mona
Composition effects
Aggregation problem
Lack of reversibility
Document Type: 
Working Paper

Files in This Item:
File
Size
378.55 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.