Multisector Growth Models

This book provides a practical foundation in general equilibrium theory, discusses how to link the theory to real economic data, and provides clear instructions on how Mathematica can be used to construct model simulations for policy and other analysis.

The primary objective of this book is to advance the state of the art in specifying and ?tting to data structural multi-sector dynamic macroeconomic models, and empirically implementing them. The fundamental construct upon which we build is the Ramsey model. A most attractive feature of this model is the insights it provides into the dynamics of an economy in tr- sition to long-run equilibrium. With some exceptions, Ramsey models are highly aggregated typically single sector models. However, interest often lies in understanding the forces of e- nomic growth across multiple sectors of an economy and on how policy impacts likely play out over time. Such analyses call for moredisaggregatedmodelsthatcanbe?ttocountryorregional data.Thisbookshowshowto:(i)extendthebasicmodeltom- tiple sectors, (ii) how to adapt the basic model to account for policy instruments, and (iii) ?t the model to data, and obtain equilibrium values both forward and backward in time from the data points to which the model is initially ?t.

Emphasizes the microfoundations of multi-sector growth models Practical guide for constructing, solving, applying and validating multisector growth models Instructions on software applications (Mathematica) Includes supplementary material: sn.pub/extras

Klappentext

This book provides a reader with a practical foundation in general equilibrium theory, embeds the theory in a multi-sector dynamic framework, discusses how to practically link the theory to real economic data, and provides clear instructions on how to use existing software in this case Mathematica to construct model simulations for policy and other analysis. This book pulls it all together in a conceptually sound, yet practical, manner, and brings the theory to life. A unique feature is the integration of traditional static trade theory into modern neoclassical growth theory so the reader has the sense of building upon known constructs as opposed to learning a sequence of different models. The book provides several examples of real economic problems with policy interests and shows how to "bring these problems to life" with theory and data.

Inhalt
Introduction: Orientation and Focus.- The Preliminaries.- The Two Sector Ramsey Model.- The Three-Sector Ramsey Model.- Extensions to the Three-Sector Model.- The Extended Three-Sector Model.- A Three-Sector #x2013; Two-Country World.- Data Issues and the Social Accounting Matrix.- Solution Methods in Transition Dynamics.