top down approach

Synonyms

top down design, top-down models

Definition

Models applying macroeconomic theory, econometric and optimization techniques to aggregate economic variables. Using historical data on consumption, prices, incomes, and factor costs, top-down models assess final demand for goods and services, and supply from main sectors, such as the energy sector, transportation, agriculture, and industry. Some top-down models incorporate technology data, narrowing the gap to bottom-up models. (IPCC, 2014)

Broader terms

typology of methods