The use of econometric methods in the analysis of centrally planned economies: The SRI-WEFA experience

This paper outlines the macroeconomic conception of the centrally planned, economy and the econometric methodology which have guided the development of the SRI-WEFA Soviet Econometric Model. Following a brief description of the structure and properties of the model, the role of theory and the use of dummy variables are considered as central methodological issues in the application of econometric methods to centrally planned economies.