Proceedings of the New York State Economics Association


A 33 Equation Econometric Model of the U.S Economy

John J. Heim

vol. 6, October 2013, p. 57-63


The model contains 22 behavioral equations and 11 identities connecting them into an integrated model of the real U.S. economy. Behavioral equations were generally estimated applying strong instrument 2SLS to 1960-2010 data. The model includes equations for 7 components of consumption, 7 components of investment, two prime interest rate determination models based on the Taylor rule or the Keynesian LM curve, 1 export function, 2 "IS" curve functions determining GDP. In addition, behavioral models for taxes, unemployment and inflation are included. Eleven identities connect the various parts. Identification issues are resolved, and model results are robust to different time periods.


suggested citation:

John J. Heim. "A 33 Equation Econometric Model of the U.S Economy." Proceedings of the New York State Economics Association. vol. 6, October 2013, p. 57-63

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