Journal of Statistical and Econometric Methods

An empirical analysis of simulated model of economic growth for United Kingdom

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• Abstract 

  This study investigates a simulation model of economic growth for United Kingdom for the period 1970-2017. The purpose of this study is to examine the main determinants of economic growth examining a structural system equation model. Two stage least squares method is used in order to examine the direct and indirect relationships between the dependent variables of the model. Finally, a Monte Carlo simulation method is applied in order to define the sensitivity analysis and predictive ability of the estimated system equation model.

  JEL Classification Numbers: O11, C22
  Keywords: economic growth, system equation model, Monte Carlo simulation