Thailand: Technical Assistance Report-Technical Assistance to the Ministry of Finance–Development of a Dynamic Stochastic General Equilibrium Model

Summary

This document describes the technical needs that have given rise to a Fund's technical assistance (TA) project for the development of a customized structural micro-founded (DSGE) model in the Ministry of Finance of Thailand, as well as its objectives and key work program elements. This project, led by the Institute for Capacity Development (ICD) of the Fund, aims to reinforce the policy analysis system in Thailand, through the introduction of the DSGE model for policy simulation and macroeconomic risk analysis. While direct beneficiary of this TA will be the MoF's Fiscal Policy Office, the authorities plan to integrate the tool's outputs in the Thai macroeconomic reporting infrastructure and main policy discussion fora, inside and outside the MoF. This TA has been financed by the government of Japan.