Economic modelers — in need of a code of conduct6 March, 2016 at 13:52 | Posted in Economics | 1 Comment
Auditors have a code of conduct because financial information is open to abuse and people rely on this information to make important decisions.
Actuaries … have a code of conduct that includes context, basic rules and a declaration of fairness and accuracy. A consistent standard would be in the interest of the economic modelling industry and its reputation.
We call on the government to develop a code of conduct to ensure the standard of all economic modelling used to inform Government is transparent and of a high standard.
State and federal governments are the main audience for economic modelling. In turn, they have a unique ability to influence the behaviour of economic modellers by simply requiring that all modelling aimed at influencing government decisions conform to minimum standards.
Code of Conduct
1) clearly disclose who, if anyone, commissioned a piece of work
2) clearly discuss key assumptions and provide sensitivity analysis where appropriate
3) provide an explanation of the choice of model and, where appropriate, discuss the pros and cons of alternate choices of model (for example input-output modelling versus computable general equilibrium modelling)
4) the author(s) of a report should be made clear and the author(s) should take responsibility for both the plausibility of the results and the appropriateness of their presentation, including the presentation of their work by those that commissioned the work
5) full modelling results should be made publicly available at the time if their release to the media.