ABSTRACT

This interaction between policy makers and economists in the design and usage of empirical models was the theme of the 10th Anniversary Conference of the Tinbergen Institute and hence of this volume of papers. This two-way interaction between economic models and policy-making is almost certainly widespread, and recognized by those participating in policy work, but has been subject to very little systematic research and analysis. Our research asks pertinent questions about the interactions: How do such interactions work? What constitutes successful interaction? Upon which factors does successful interaction depend? In order to make sense of both questions and answers, an analytical framework is also needed to help us interpret the cases we have assembled here and systematize our knowledge about the ways empirical models (both large-and small-scale) are used. The ultimate aim of researching these questions is to investigate within which institutional framework such interaction between model makers and model users is likely to be most fruitful.