Model quality

CPB uses economic models for projections, calculations and quantitative analyses. These models differ in purpose, design and use: CPB has models that describe the functioning of the macro-economy, the behavior of individual households or especially accounting relationships. Models are by definition a simplified representation of reality. This means that our models are not a prediction machine, but an indispensable tool. CPB believes it is important to be transparent about how our models work, what assumptions are made, and what the models can and cannot be used for.