CESAM : The CCSO annual model of the Dutch economy

This paper presents CESAM, a macroeconometric model of the Dutch economy based on annual data. CESAM can be characterized as a Keynesian expenditure model including a neoclassical production model and a post-Keynesian financial model. This characterization holds for most of the Dutch macroeconometric models including, for instance, FREIA-KOMPAS of the Dutch Central Planning Bureau. There are, however, some interesting features that distinguish CESAM from other Dutch models: the production structure is based on a putty-clay vintage approach; the financial model is based on a system of financial accounts and is modelled using the portfolio approach; and the institutional structure of Dutch public finance is described in detail. The main objectives in using the model are to generate medium-term forecasts of the Dutch economy and to analyse economic policy