Macroeconomic model

Biruni Institute’s team of economic modelers have produced a macroeconometric model of the Afghan economy (named ‘MODAF’) for forecasting and policy simulation purposes. The model includes 8 stochastic equations, with 18 identities, and has 41 variables, out of which 13 are exogenous user-supplied variables. The model will be used as the main instrument for economic forecasting and policy simulations by the Biruni Institute in its publications and analytical reports. The model is developed in EViews, and will be annually updated and maintained by the Biruni Institute team.

Social Accounting Matrix (SAM) and Input-Output modeling

Biruni Institute has compiled a Social Accounting Matrix (SAM) for Afghanistan, consisting of 38 production sectors, labor (disaggregated by gender and by skills level), capital, household (disaggregated by income quintiles and urban/rural), firm, government, saving-investment, and rest of the world (trade in G&S and transfers) accounts. SAM is the building block of a Computable General Equilibrium (CGE) model used for policy simulations.

The Institute has developed a SAM-based multiplier model to be used for policy simulations.