Friday, November 27, 2009

Meaningful macroeconomic analysis of Sudan.... the skeptical note

I am reviewing applicants in macroeconomics for the position we have open here at Santa Clara University.... a couple hundred at latest count, and all with really interesting macroeconomic papers... lots of DSGE models etc. But what suddenly struck me is how this whole revolution in modeling macro is completely useless for a country like Sudan, where probably 2/3 of the economy marches on with no data, and the data for the 1/3 of the economy around Khartoum is seriously mismeasured (especially the government sector!). Macro modeling seems like a rather silly enterprise in that kind of setting. Better to just to use the DSCRPTV model for macroeconomic analysis ;-)

Though there is a dictum, attributable to T.N. Srinivasan, I think: "Bad data? Need better econometric tools."

No comments:

Post a Comment