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Testing the Reliability and Existence of IS-LM Model for Pakistan

Author

Listed:
  • Gulzar Ali

    (Assistant Professor,Department of Economics,Islamia College Peshawar, KP, Pakistan.)

  • Said Zamin Shah

    (Assistant Professor,Department of Economics,Islamia College Peshawar, KP, Pakistan.)

  • Ghulam Mustafa

    (Assistant Professor,Department of Economics and Business Administration,Division of Arts and Social Sciences, University of Education, Lahore, Punjab Pakistan.)

Abstract

The IS-LM model was considered indispensable and had great importance and recital for macroeconomic phenomenon at theoretical as well empirical analysis since 1960s. Now a days the applications of IS-LM model has been greatly restricted to few situations depicts losing the fame. However it has been a crucial part of the basic principles and manuscripts of macroeconomics long since 1960s. Observing the reliability and existence of IS-LM model in case of Pakistan, for that purpose the study regressed two model; in first the basic model without including the model parameters and in second, with model parameters. The empirical results found the reliability and existence of IS-LM model.

Suggested Citation

  • Gulzar Ali & Said Zamin Shah & Ghulam Mustafa, 2019. "Testing the Reliability and Existence of IS-LM Model for Pakistan," Global Economics Review, Humanity Only, vol. 4(2), pages 13-23, June.
    • Handle: RePEc:aaw:journl:v:4:y:2019:i:2:p:13-23
    DOI: 10.31703/ger.2019(IV-II).02
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    More about this item

    Keywords

    IS-LM model; planned expenditure; Descriptive Statistics; ARDL approach.;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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