Estimation of Some Omani Macroeconomic Parameters - A Discussion

The captioned article was earlier published in “Economic Horizons” volume 18, #72 – AH 1418 – 1997 (4) Pages (65-78). I had some concerns about the article regarding the methodology adopted for analysis in deriving the macroeconomic parameters and the derivation and interpretation of dynamic multipliers. The same data set was used for addressing these concerns. The working paper demonstrated that in estimating model coefficients from aggregate data for macroeconomic purposes, system estimation and GLS methodology provided more robust estimates since there is gain in efficiency in the model coefficients which are more reliable for policy analysis.