TRADITIONAL MACROECONOMETRIC MODELS AND A PPLIED GENERAL EQUILIBRIUM-MODELS

Within the last twenty years applied economic models have changed cons iderably. Another type of applied models - beside the macroeconometric models in the tradition of Tinbergen, Klein and others - namely the a pplied general equilibrium models, has come to the forefront. The incr easing interdependencies between national economics in the wake of e.g . the free movement of goods, capital etc. across national boundaries have also left their mark on the development as witnessed by the incre asing concern for and importance of the rate of interest and the deter mination of the exchange rate. These trends will be described and anal ysed briefly in this article.