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Issue:

Business

 

Written by:

Clara A

 

Date added:

November 14, 2015

 

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Grade:

A

 

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34 / 9338

 

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Models are an invaluable tool for exploring alternative policy choices and for generating insights about how the economy is might respond to different types and forms of regulation. They cannot, however, predict future events, nor can they produce precise projections of the consequences of specific policy...
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They cannot, however, predict future events, nor can they produce precise projections of the consequences of specific policy. Every model uses its own set of assumptions, definitions, structure and data – its results ultimately depend on these attributes and choices. A proper understanding of economic models, their uses and limitations, is therefore critical in furthering a constructive debate about options for climate policy...
displayed 300 characters

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