Narrow Results

The following sections are included:

• Introduction

• The case of Liang's Model

• The case of Shen's Model

• Concluding Remarks

• References

The following sections are included:

• Introduction
• Characteristics of the WEFA Mark 10 Model
• Characteristics of the Core Macroeconometric Model
• References

The core model of WEFA Mark 10 in this book constructs the US Economy model by subdividing the whole system into the following 10 different sectors plus one miscellaneous sector: (1) Final demand, (2) Income determination, (3) Labor market, (4) Price and costs, (5) Government revenue and expenditure, (6) Production and sectoral demand, (7) Population and demographics, (8) Money and finance, (9) Auto and petroleum market, (10) International sector, and (11) Miscellaneous.

This chapter describes the basic way of thinking in our core model, following the exposition given in Chapter 1, and the detailed equations are provided in Chapter 5.

The following sections are included:

• Introduction
• Industrial Demand
• Modeling Industrial Production

This chapter describes some technical issues on specification and the estimation methods employed in Mark 10. Following are the four methods: (1) PDL estimate, (2) user cost of capital, (3) estimation of short-run employment and (4) CES production function. (1) to (3) are drawn primarily from Klein (1967) [3], Cohen (1968) [2], Preston (1972) [6] and McCarthy (1972) [5], and (4) refers to Arrow et al. (1961) [1] and Kmenta (1967) [4].

The following sections are included:

• How to Read WEFA Estimated Equations
• A System of Estimated Equations
• Final Demand
  • Consumption spending: Durable, non-durable and services
    • Consumption expenditure on durable goods
    • Consumption spending on nondurable goods
    • Consumption spending on services
  • Fixed investment and changes in inventory
    • Nonresidential fixed investment
    • User cost of capital
    • Capital stock (nonresidential)
    • Residential investment
    • Changes in inventory
    • Inventory stock
  • Government expenditure
  • International exports and imports
    • Exports
    • Imports
    • Net exports (international)
  • GDP, GNP and potential capacity
• Income Determination
  • Personal income
  • Wage actuals
  • Corporate profit
  • Capital consumption allowance
  • Inventory valuation
• Labor Market
  • Employment
  • Average weekly hours
  • Unemployment
  • Labor force
  • Labor force participation rate
• Price and Costs
  • Prices
    • PPI (Producer price index)
    • CPI (Consumer price index)
    • PDG (Implicit price deflator)
  • Wage and average compensation
    • Average compensation per manhour (public)
    • Average hourly earnings
    • Input cost term
    • Unit labor cost
    • Employment cost index
  • Anticipated inflation
  • Unit value
• Government Revenues and Expenditures
  • Government receipt
  • Government expenditure
  • Government surplus
  • Subsidies
  • Tax rate
  • Transfer payment
  • Profit tax rate
• Production and Sectoral Demand
  • IP (Industrial production index)
  • Total demand
• Population and Demographics
  • Population
  • Household
• Money and Finance
  • Interest rate
  • Loans
  • Money
• Auto and Petroleum Market
  • Auto production and car sale
  • Petroleum demand
• International Sector
  • Exchange rate (international)
• Miscellaneous
  • Residual
• A Description of Variables in the Wharton Model Mark 10

The following sections are included:

• Introduction
• Some Characteristics of the Mark 9 Model
• Impacts on GNP of Changes in Policy and Exogenous Variables
• Reference

The following sections are included:

• A. What Economic Forecasters Really Do¹
• B. The WEFA: Macro Model with Chain-Weighted GDP²

It has never been published but available on the Web and cited a few times. It provides a support for Klein’s works from an unusual viewpoint. I was told afterwards that Professor Klein liked the paper.

The authors of the original article of this section, quoted in Foreword, are D. Bachman, Peter Jaquette, Kurt Karl and Pasquale Rocco; all staffs of WEFA Inc then. (Baldwin Tower, Eddy stone PA 19022) At present, Peter Jacquette: Senior Director, Global Oil at PIRA Energy Group Pasquale; Kurt Karl Chief Economist, Swiss re; Pasquale Rocco: Director of Research at TWIN Capital Management, Inc.

The following sections are included:

• Author Index
• Subject Index

The following sections are included:

• Preface
• About Lawrence R. Klein (1920–2013)
• About the Editors
• Contents
• List of Figures and Tables