SLOPOL6: A Macroeconometric Model For Slovenia

Abstract

Slovenia entered the European Union in 2004 and was the first country of the ten new members to enter the Euro Area in 2007. As Slovenia was part of Communist Yugoslavia until 1991, the economic history of this country to some extent started after that date. This provides difficulties for attempts to discover empirical regularities to be exploited for forecasting and policy analysis. Nevertheless, in this paper, we describe a macroeconometric model for Slovenia, called SLOPOL6. It was estimated using most recent quarterly data and rests on up-to-date econometric methodology, including stationarity and cointegration analysis. The model has already been used successfully for simulations of alternative monetary and fiscal policy measures.