ABSTRACT
Macro models specifically for developing countries are not very common. This is surprising given the wide variety of experiences of many developing countries with respect to macroeconomic performances. Perhaps the most important factor behind this is the poor quality of data in many developing countries. This poor data quality leads to difficulties in empirically verifying these models. In this chapter we will look at several variants of these modelssome more representative of some groups of countries than others. For instance, supply responses will vary across groups of countries. Developing countries with reasonably well developed financial models such as Thailand will have different supply responses than many African countries where financial markets are rather weak or do not exist at all.
