Multicountry models were developed in the previous century to serve the analyses and projections of the world economy and/or its regions (for instance Latin America). They distinguish the largest countries and the rest of the world (ROW) composed of particular countries. Hence, their structure...

In industrialized countries the rising percentage of households behaves rationally. It is represented by the life cycle hypothesis of determining their incomes. This concept was taken into account in many macroeconometric multicountry models. The W models of the Polish economy assumed the number...