UK Sectoral
MDM-E3 is distinguished from most other UK models by its degree of 'disaggregation' - the extent to which it breaks the economy down into different industrial sectors. Some 41 industries are distinguished as integral parts of a single model, making MDM-E3 the largest model of the UK economy. The number of industries is chosen to give a good balance across the economy, without encumbering the model and the forecast with irrelevant and unnecessary detail. Because the model solves 'bottom-up' by adding industry projections together in an input-output framework, it does not suffer from the discrepancies between industry totals and macro totals that can require scaling to enforce consistency in a two-model approach. It produces consistent macroeconomic and industrial forecasts.
For further information, email:
Rachel Beaven
Director
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