Integrated Simulation Framework II – Model for Palestinian Economic Policy
Since the Integrated Simulation Framework (ISF) was first developed more than a decade ago, significant structural changes have taken place, and more data and information have become available. UNCTAD subsequently deemed it necessary to upgrade its macro-econometric model of the Palestinian economy by developing an updated generation of the ISF. Like its predecessor, the ISF II is a Klein-type demand-side model, though it goes beyond the standard demand-side approach by integrating the supply side of the economy in its structure. It uses more recent economic and demographic data (up to 2018), increases the number of economic sectors (value-added and employment) from four to six, and attempts to reflect Palestinian national and international economic relations since the establishment of the Palestinian National Authority (PNA) in 1994. Ultimately, the aim of this new model is to aid Palestinian policymakers in better formulating public policies by assessing the impact of alternative policy packages.
