Incorrect statistics remains major problem in macroeconomic modeling

Business Materials 10 August 2006 11:08 (UTC +04:00)

A special presentation will be held on 16 August in connection with the commencement of the functioning of the Asian Development Banks project on the development of macroeconomic model for Azerbaijan, the Center of Economic Reforms at the Ministry of Economic Development.

The project is implemented within the framework of the ADBs $600 credit, though the center has been involved in modeling for 2.5 years. It enabled to cut the foreign assistance rendered to the government, which was inefficient, the Center said. In this respect the models has been found the necessary application.

Specialists of the Center set up designing macroeconomic models 8 months ago on the base of trainings organized in Moscow with support of the World Bank. There is definite progress and by the end of the year one of the two types of models will be designed. The model of RM-SM X has been probed in many countries, including Uzbekistan, the Center said. The specialists say it is easy to regulate with managing means in case of presence of system of models. The necessity for designing of private models will help to observe the impact of one parameter on another (rise of the GDP on the inflation or vice versa, unemployment, impact of rates of the NBA, tax rates, other indices).

The major problem, however, incorrect information provided by the State Statistics Committee, the Centre added.