Philippine E-Journals

A Quarterly Macroeconometric Model of the Philippines

Cristina Castillo

Discipline: Economics, Business

 

Abstract:

This study attempts to further contribute tothe understanding of the relationshipsamong macro-economic variables in thePhilippine economy. While past macro models have been either annual or semestral, the model in this study is estimated on aquarterly basis. Quarterly models are expectedto capture more closely the short-terminteractions among economic variables.Model estimation shall be undertakenby using a simultaneous-equation system. Thisprovides for a more realistic interpretationand representation of the economy, since ittakes into account the feedback effects of certainmacro-variables into the structural system,which is not necessarily shown in asingle-equation model.