title: Analysis of Estonian Economic Policy Options based on a Macroeconomic Model
reg no: ETF5146
project type: Estonian Science Foundation research grant
subject: 5.1. Economics
status: completed
institution: Tallinn Technical University
head of project: Kaie Kerem
duration: 01.01.2002 - 31.12.2004
description: Objectives and expected results of the project:
The main objective of the proposed research project is to construct such an economic model that would allow identification of the variables that cause cyclical fluctuations of the economy and making on its basis proposals for improving Estonia`s stabilisation policy.
The aim is to investigate:
1. Factors affecting the processes taking place in the real and monetary sectors of the economy;
2. Determinants of the total supply of the economy.
In the course of the project it is planned to:
1. analyse the feasibility of using the IS-LM-AS model in the macroeconomic conditions of Estonia;
2. explain the structure suitable for the equation system of the model;
3. create a database for econometric specification of the model;
4. evaluate the parameters of the model;
5. analyse the macroeconomic development of Estonia applying the model constructed.
The expected results are.
1. an improved database,
2. economic theoretical developments for a small open economy;
3. making economic policy proposals for smoothing business cycles;
4. improving the teaching of economic theory.
Research results will be published as papers in a collective monograph and reported at international conferences. To acquaint policy makers, discussions and seminars will be arranged.

project group
no name institution position  
1.Grigori FainsteinFac. of Econ.TTUAss. Professor 
2.Alvar KangurFac. of Econ.TTUAssistant 
3.Kaie KeremFaculty of Economics and Business Administration at Tallinn Technical UniversityProfessor of Economics 
4.Enn ListraFac. of Econ.TTULecturer 
5.Mare RandveerFac. of Econ.TTUAss. Professor 
6.Marge SultsFac. of Econ.TTULecturer