Following the work of Ray Fair (1979), expectations terms in the FOCUS model are generated using predicted values from the model itself. Expectations are therefore "consistent" with the model struct ured. Government expenditure multipliers are compared for the standar d model and the CE version....

The FOCUS macroeconomic model is used to estimate the impact of the CPP premium increases introduced in 1997. It is found that these will have relatively severe macroeconomic consequences in the short to medium term, although they will put the plan on a sound fiscal footing. Additional...