Economic Models - a critical approach

You can join an interesting evening where Mads Kieler, Head of Department for Current Economics and Macro Models at the Ministry of Finance, will elaborate the use of the economic models used by the Ministry of Finance. You can also meet Katarina Juselius, former professor at Copenhagen University, and she will tell, why she has criticized the very same models.

Lately there has been a lot of focus on the use of the economic models which the Ministry of Finance uses to determine how well the Danish economy is doing. Katarina has, with her research, been one of the leading voices, when it comes to criticizing the models. According to Katarina, the models lack empiric relevance and, as they are now, do not account for e.g the effect of environmental changes.

As a response to Katarina’s critic, leading economist have argued that economic models is a tool, and they cannot be 100 percent correct in their predictions and with this in mind, the economic models is still a useful tool.