ABSTRACT
Many econometric models of non-ferrous metal markets have been constructed and estimated. The chapter reviews econometric commodity models, their evolution over time and their differences from the CAS model. The CAS model differs from econometric models of non-ferrous-metal markets in several important ways. The chapter looks at a larger number of econometric models of copper and aluminium markets and classifies them with respect to their treatment of price, production, consumption and substitution, and the natural-resource base. Econometric commodity models consist of a set of endogenous variables, whose behaviour is explained by the model, and a set of exogenous variables, whose behaviour is explained outside the model. Charles River Associates has estimated econometric models for every important mineral industry. A difference between the Desai and Fisher-Cootner-Baily (FCB) models is that distributed lags have been added to all equations in the FCB model.
