A Review of macroeconomic approaches to modelling Wellbeing, Inclusion, and Sustainability

In this review of macroeconomic models, our authors give an instructive overview of prominent modelling approaches and evaluate their theoretical and methodological strengths and weaknesses through the WISE lens. Analysing five distinct modelling approaches, they argue that there is a need to institutionalise heterodox modelling approaches in policymaking, thus moving beyond the dominance of general equilibrium models, as well as to improve existing models used in policy evaluation by integrating WISE aspects. The authors conclude that an integrated model leveraging the strengths of various modelling approaches constitutes a meaningful way forward to provide holistic representation of the complex interactions within the global economic system.