Wharton Econometric Forecasting Associates

Wharton Econometric Forecasting Associates, Inc (WEFA Inc) was a world-leading economics forecasting and consulting organisation founded by Nobel Prize winner Dr. Lawrence R. Klein.

WEFA Inc was a spinoff of the Wharton School of the University of Pennsylvania, where Klein taught. WEFA Inc traced an interesting path (see below for full details) from its predecessor in 1961 (the Economic Research Unit, discussed below), its initial launch in 1969 (as Wharton Econometric Forecasting Associates Inc), to its ultimate merger with DRI (formerly Data Resources Inc.) forming Global Insight in 2001, and subsequent to that, Global Insight's acquisition in 2008 by IHS Inc.

Incorporated in 1969 by the Trustees of the University of Pennsylvania as a "not for profit" organization, WEFA Inc was an outgrowth of the Economics Research Unit (ERU) located in the economics department of the University of Pennsylvania. The ERU, a research unit devoted to graduate economics education, was originally sponsored [in 1961] by grants from five US corporations including, IBM, Bethlehem Steel, John Deere, Exxon and Sunoco.

Among other things, the ERU was originally charged with the maintenance and use of the Wharton Quarterly Model [WQM] and the Wharton Index of Capacity Utilization. Between 1961 and 1969 the number of sponsors increased to the point where a more efficient organization was needed [WEFA Inc] to manage the many projects that grew out of the operation of the Wharton Quarterly Model.

In June 1969, when WEFA Inc was incorporated, Dr. Lawrence R. Klein was appointed board chairman, Dr. Michael D. McCarthy was appointed executive director, and the then Director of the ERU, Dr. F. G. Adams, was appointed secretary-treasurer. Other members of the Board were: The Dean of the Wharton School of Finance and Commerce at the University of Pennsylvania, ex officio, The Chairman of the Department of Economics of the University of Pennsylvania, ex officio, Paul F. Miller, (Board of Trustees of the University of Pennsylvania), Dr. Michael K. Evans (University of Pennsylvania, economics department), Dr. Paul Taubman (University of Pennsylvania, economics department), and Dr. Richard J. Kruizenga,(Chief Economist and Manager, Corporate and Environmental Economics, Standard Oil Co. of New Jersey).

Dr. Michael D. McCarthy served as executive director from June 1969 to December 1970. After joining WEFA Inc as Director of Industrial Research in August 1969, Dr. Ross S. Preston was appointed a board member and executive director of WEFA Inc in December 1970.

Preston served as Executive Director until the spring of 1975, at which time he was appointed Secretary-Treasury of WEFA Inc. During Preston's tenure as Executive Director, WEFA Inc not only expanded its sponsorship of the Wharton Quarterly Model [WQM], but also developed the Wharton Annual and Industry Forecasting Model [WAIFM] which integrated input-output theory within the structure of a macro-econometric model. The predecessor of WAIFM was the Brookings Quarterly Model, originally funded by the Social Science Research Council.

The LINK project (also housed at WEFA Inc), which produced the world's first global macroeconomic model, was mentioned in Klein's citation for the Economic Sciences in 1980.

The various organization which acquired the rights to distribute WQM and WAIFM include: 1961-69 Economics Research Unit (University of Pennsylvania) distributes the Wharton Quarterly Model; 1969 University of Pennsylvania Board of Trustees (WEFA Inc is incorporated and takes over distribution of the Wharton Quarterly Model); 1969 WEFA Inc begins distribution of the Wharton Annual and Industry Forecasting Model; 1980 Ziff-Davis Publishing Co. acquires WEFA Inc; 1983 Cie International de Services en Informatique acquires WEFA Inc; 1986 WEF Associates AG acquires WEFA Inc; 1987 WEF Associates AG acquires Chase Econometrics, WEFA Inc becomes WEFA-CEIS; 1994 Information Partners (Bain Capital) acquires WEFA-CEIS; 1997 Primark Corporation acquires WEFA-CEIS; 2000 The Thomson Corporation acquires Primark Corporation; 2001 Global Insight acquires WEFA-CEIS from The Thomson Corporation and merges it with DRI; 2008 IHS Inc. acquires Global Insight.

General corporate timeline

References

  1. University of Pennsylvania, Minutes of the Executive Board of Trustees, 1969-06-13
  2. "McGraw-Hill announces it plans to buy Data Resources headed by Prof Otto", New York Times Abstracts, 1979-07-14
  3. "Pennsylvania Univ to sell controlling interest in its Wharton Econometric", New York Times Abstracts, 1979-12-18
  4. 1 2 "ZIFF CORP. PLANS ENTRY INTO FINANCIAL-INFORMATION SYSTEM", The Wall Street Journal, 1980-06-18
  5. "ZIFF CORP. ACQUIRES WHARTON ECONOMETRIC FORECASTING", Dow Jones News Service, 1980-06-12
  6. "Cie International de Services en Informatique of France has acquired an 80% interest in Wharton Econometrics of Philadelphia, USA from Ziff Davis", Textline Multiple Source Collection (1980-1994), 1983-03-18
  7. "CISI Wharton, part of the French CEA, is to invest $12m over the next 3 years, making the newly enlarged entity one of the world's leading economic forecasters", Les Echos, 1983-06-20
  8. "CEA Industrie of France, part of Commissariat a l'Energie Atomique, is selling its economic information and forecasting division, CISI Wharton, to WEF Associates of Switzerland", Textline Multiple Source Collection (1980-1994), 1986-11-16
  9. "WEF ASSOCIATES ACQUIRES CHASE ECONOMETRICS", Dow Jones News Service, 1987-04-01
  10. "Flash and a Touch of Brash". Time. 1979-06-25. Retrieved 2007-05-05.
  11. "Wharton's Swiss Parent Buys Chase Econometrics --- A Wall Street Journal News Roundup", The Wall Street Journal, 1987-04-02
  12. "COMPANY NEWS; Company Returns To Wharton Name", The New York Times, 1987-04-11
  13. "Information Partners completes purchase of The WEFA Group", Business Wire, 1994-08-02
  14. "Year End Deal List 1994". Private Equity Week. Retrieved 2007-05-05.
  15. 1 2 "Primark Corporation to Acquire WEFA Holdings, Inc", PR Newswire, 1997-01-16
  16. "Cognizant to Report $5.4 Million First Quarter Gain From Sale of WEFA Group, Inc", PR Newswire, 1997-03-19
  17. "Primark Completes Acquisition of WEFA Holdings, Inc", PR Newswire, 1997-02-07
  18. 1 2 "Thomson Corp. to Acquire Primark", Information Today, 2000-07-01
  19. 1 2 "The Thomson Corporation to Acquire Primark", Business Wire, 2000-06-05
  20. "Thomson snaps up U.S. giant Buys major financial information firm Primark for $842-million, continuing its makeover into e-powerhouse", The Globe and Mail, 2000-06-06
  21. "DRI-WEFA Announces Appointment of Chief Economist", PR Newswire, 2001-05-17
  22. 1 2 Hilsenrath, Jon (2001-05-07), "McGraw-Hill, Thomson Units Merge to Form Separate Entity", The Wall Street Journal
  23. 1 2 Loyd, Linda (2001-05-08), "Eddystone, Pa., Economic Research Firm to Merge with Massachusetts Company", Knight Ridder Tribune Business News - KRTBN
  24. "Global Insight Creates Economic Powerhouse With Five Acquisitions", PR Newswire, 2001-05-08
  25. "Lexington's Eye on the World", The Boston Globe, 2006-06-01
  26. "Global Insight Agrees to be Acquired by IHS Inc". Company press release. 2008-09-18. Retrieved 2008-10-19.
  27. "IHS Closes Acquisition of Global Insight, Inc" (PDF). Company press release. 2008-10-13. Retrieved 2008-10-19.
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