Structural Modelling Under Challenge

Over the last two decades or so macroeconometric modelling which was in vogue over the sixties and the seventies has ceased to be high on the academic agenda. This has been for a number of developments in macroeconomic theory and in econometric methodology. At the same time it is by no means true that macroeconometric modelling in the Cowles Commission tradition has been given up. Like all healthy disciplines the subject has incorporated some of the new developments and rejected some. Structural models continue to be used for policy formulation and continue to be used for policy formulation and evaluation all over the world because no viable alternative has emerged so far. This paper is intended to take stock of the prevailing situation and to suggest the course that the subject is likely to take in the years to come.