Linking Real Activity and Financial Markets: BEAM model 1
Bibliographic record
Abstract
A small monthly macroeconometric model of the Canadian economy built around three cointegrating relationships linking financial and real variables is estimated over the 1975-2002 period. One of the cointegrating relationships allows the identification of a supply shock as the only shock affecting permanently the stock market and a demand shock leading to important transitory stock market overvaluation. We also suggest a monetary policy reaction function using the estimated impact over time of the typical permanent inflation shock to modify the historical reaction function in such a way to eliminate any forecast persistent deviation from target. In-sample simulations over the last ten years suggest that following BEAM’s advice would have cut by more than half the root-mean squared deviation of inflation from target over the period. A technical innovation of the paper consists in showing under which conditions permanent shocks can be identified in a VECM with exogenous variables.
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How this classification was reachedexpand
Full frame machine prediction
Teacher imitationNot calibrated prevalence, not ground truth. Human validation pending. The Gemma side is a direct model label for every work in the frame, read from the title-only record. The Codex side is a classifier learned from the 10,348 direct Codex labels and calibrated to design-weighted sample rates; fields without enough sample support carry no Codex call. Candidate is the union of the two sides; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels.
Distilled classifier scores by category (both heads)
| Category | Codex | Gemma |
|---|---|---|
| Metaresearch | 0.001 | 0.004 |
| Meta-epidemiology (narrow) | 0.001 | 0.001 |
| Meta-epidemiology (broad) | 0.001 | 0.001 |
| Bibliometrics | 0.001 | 0.002 |
| Science and technology studies | 0.001 | 0.001 |
| Scholarly communication | 0.003 | 0.002 |
| Open science | 0.003 | 0.001 |
| Research integrity | 0.003 | 0.002 |
| Insufficient payload (model declined to judge) | 0.016 | 0.003 |
Machine scores (provisional)
The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.
Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.
score_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from itClassification
machine, unvalidatedMachine predicted; a candidate call from one source (direct Gemma or distilled Codex), not a consensus.
How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".