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A Macroeconometric Model for Saudi Arabia: A Case Study on the World's Largest Oil Exporter

A Macroeconometric Model for Saudi Arabia: A Case Study on the World's Largest Oil Exporter

Paperback

Series: Springerbriefs in Economics

Business GeneralEconomics

ISBN10: 3031122747
ISBN13: 9783031122743
Publisher: Springer Nature
Published: Jan 2 2023
Pages: 169
Weight: 0.59
Height: 0.39 Width: 6.14 Depth: 9.21
Language: English

This Open Access Brief presents the KAPSARC Global Energy Macroeconometric Model (KGEMM). KGEMM is a policy analysis tool for examining the impacts of domestic policy measures and global economic and energy shocks on the Kingdom of Saudi Arabia. The model has eight blocks (real sector, fiscal, monetary, external sector, price, labor and wages, energy, population, and age cohorts) that interact with each other to represent the Kingdom's macroeconomy and energy linkages. It captures New Keynesian demand-side features anchored to medium-run equilibrium and long-run aggregate supply. It applies a cointegration and equilibrium correction modeling (ECM) methodology to time series data to estimate the model's behavioral equations in the framework of Autometrics, a general-to-specific econometric modeling strategy. Hence, the model combines 'theory-driven' approach with 'data-driven' approach.

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