<p>Macroeconomics is a deep field, but the general model of the real economy is called the Dynamic Stochastic General Equilibrium (DSGE) model.</p>
<p>Some economists take a Bayesian approach and use Computable General Equilibrium (CGE) models, built on Social Accounting Matrices (SAMs). But, the frequentist approach, with a vector autoregression (VAR), is simpler and is accurate, even though it is less evidence-based. A VAR can be run in R by using the function</p>
<pre><code>vars::VAR(data_table, p=3)
</code></pre>
<p>Then you can predict future time periods based on the coefficients.</p>

CC BY-SA 4.0
2024-12-22T03:48:57.497Z
Little late on my part, but thank you.
cswor
CC BY-SA 4.0
2024-09-29T05:16:35.387Z
2024-09-29T05:16:35.387Z
ahorn
<p>I am leaning toward a python solution and can work in a Win or Linux environment. I have looked into the area a bit and looked at some of the modelling efforts of the Federal Reserve and the &quot;circular&quot; models look potentially useful. If you have tools suggestions, it would be appreciated. I also believe in continuous education and would welcome suggestions for good texts on the topic and online classes such as Coursera.</p>
<p>Type of problems I would like to have the model clarify issues like this. CA Governor Newsom proposal to help with price spikes and excessive profit by gas producers: The proposal would authorize the California Energy Commission (CEC) to require that petroleum refiners maintain a minimum fuel reserve to avoid supply shortages that create higher prices for consumers.</p>

CC BY-SA 4.0
2024-09-15T22:11:25.197Z
Check out [Dynare](https://www.dynare.org/)
Herr K.
<optimization><python>
Looking for tools to model an economy (like the US) and the effect of changes such as Fed Interest rate or inflation
cswor
# Looking for tools to model an economy (like the US) and the effect of changes such as Fed Interest rate or inflation

(Asked by: username_0 on 2024-09-15)

I am leaning toward a python solution and can work in a Win or Linux environment. I have looked into the area a bit and looked at some of the modelling efforts of the Federal Reserve and the "circular" models look potentially useful. If you have tools suggestions, it would be appreciated. I also believe in continuous education and would welcome suggestions for good texts on the topic and online classes such as Coursera.

Type of problems I would like to have the model clarify issues like this. CA Governor Newsom proposal to help with price spikes and excessive profit by gas producers: The proposal would authorize the California Energy Commission (CEC) to require that petroleum refiners maintain a minimum fuel reserve to avoid supply shortages that create higher prices for consumers.

**Tags:** optimization, python

> **Comments:**
> **username_1**: Check out [Dynare](https://www.dynare.org/)  

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## 1 answers

### Answer by username_2 on 2024-09-29. Score: 1

Macroeconomics is a deep field, but the general model of the real economy is called the Dynamic Stochastic General Equilibrium (DSGE) model.

Some economists take a Bayesian approach and use Computable General Equilibrium (CGE) models, built on Social Accounting Matrices (SAMs). But, the frequentist approach, with a vector autoregression (VAR), is simpler and is accurate, even though it is less evidence-based. A VAR can be run in R by using the function

```
vars::VAR(data_table, p=3)

```

Then you can predict future time periods based on the coefficients.

> **Comments:**
> **username_0**: Little late on my part, but thank you.  

---

