This chapter uses concepts of the industrial organization literature to investigate the Dutch macro modelling industry. For a long time, this industry was characterized by a virtual monopoly in the market for semi-official macroeconomic forecasts and policy analysis. We identify rents in terms of prestige, information and impact on economic policy. To a large extent, these rents explain why entry in this market occurred. Two case studies, on fiscal policy and competition policy, illustrate how policy makers and model builders interacted. These structural policies could not be analysed by the official model(s) and were only investigated in modelling exercises by relative outsiders. Finally, we discuss some policy implications of more competition in this modelling industry.
|Title of host publication||Empirical Models and Policy-Making|
|Subtitle of host publication||Interaction and Institutions|
|Publisher||Taylor and Francis Ltd.|
|Number of pages||13|
|ISBN (Electronic)||0203130499, 9781134573134|
|ISBN (Print)||0415236053, 9780415232173|
|Publication status||Published - 1 Jan 2003|