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What is macroeconomic modelling? And why do we do it?

What is macroeconomic modelling? Why do we use macro economic models?

Hector Pollitt, explores: what is macroeconomic modelling? And why do we do it?

I am not a fan of economic models because they have all proven wrong.David Davis MP, Secretary of State for Exiting the EU, December 2017.

Is this the case? Is it reasonable to take this view?…

Taxing food and fuel – impacts on poorer households

It is now widely acknowledged that decarbonisation will not be possible without putting a price on carbon. Some economists (and most modellers outside Cambridge Econometrics) even suggest that a carbon price would be sufficient to meet carbon targets.

But in the UK there is a …

The North-South divide: the performance gap

north south divide performance gap

It is nearly four years since the inception of the Northern Powerhouse. Has the performance gap between the Greater South East and the rest of England, the North-South divide, narrowed?

In short, no. Recent newspaper articles refer to the persistence of the gap between the nor…

Trump tariffs will not bring back coal

When President Trump announced a tariff on imports of solar panels we immediately ran some figures through our macroeconomic model to assess the impact that the policy might have on the US energy system.

Our analysis shows that Trump’s tariff on solar panel imports, whi…

Does productivity necessarily increase with city size?

In his second guest blogpost Ron Martin, Professor of Economic Geography, University of Cambridge explores whether the productivity of Britain’s northern cities would improve by substantially expanding their size, or seeking to merge them into a single very large city.

Should we fear the rise of the machines?

How will increased robotisation affect income, production and consumption? Will society benefit from the transition to automation in the long-run? Are humans destined for redundancy and poverty?

In his second blogpost on this subject our Director, Hector Pollitt explains why e…

Saving Santa and the North Pole’s economy

In this light-hearted blogpost our Director, Hector Pollitt wonders how an economist would set about modelling the economy of the North Pole and finds that the challenges are not insurmountable.

But how on earth do you account for ‘magic’?  Is there a currency? What about…

Trust me, I’m an economist

How should economists operate in a politically charged climate? Is our role to put forward a ‘balanced’ view?

Richard Lewney, our Chairman, argues that by not putting forward an opinion we leave our job half-done.

Cambridge Econometrics recently attracted social media r…