Forecasting the World Economy Using Dynamic Intertemporal General Equilibrium Multi-Country Models

This paper gives an overview of the types of models available for analysing possible futures of the global economy. It then focuses on dynamic intertemporal general equilibrium models and describes how these models are used for both projections and scenario analysis. Some lessons from recent history both theoretical and practical are used to demonstrate the usefulness of the models. Address Correspondence to: Professor Warwick J. McKibbin Economics Division Asia Pacific School of Economics and Management Australian National University ACT 0200 Australia.