An Econometric Model of Non-Agricultural Stock Changes. Quarterly Economic Commentary, December 1977

McCarthy, Colm (1977) An Econometric Model of Non-Agricultural Stock Changes. Quarterly Economic Commentary, December 1977. [Working Paper]

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Abstract

Macroeconometric models pay particular attention to the equations dealing with the major components of aggregate demand, such as consumption, investment and exports. In the Central Bank's econometric model [l], investment is broken down into three components: residential investment, non-residential investment and stockbuilding. While stockbuilding is a relatively small proportion of aggregate demand, it is a volatile magnitude and has traditionally been accorded an important place in the study of economic fluctuations. This note is devoted to a discussion of the stockbuilding equation. The following sections deal with the models tested, the empirical results and the conclusions. Data, sources and methods are given in the appendix.

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