IDEAS home Printed from https://ideas.repec.org/p/ags/monebs/267294.html

Using the Murphy Model to Provide Short-Run Macroeconomics Closure for Orani

Author

Listed:
  • Breece, James H.
  • McLaren, Keith R.
  • Murphy, Chris W.
  • Powell, Alan A.

Abstract

This paper gives details of an interface constructed to allow the coupling of the ORANI applied general equilibrium model and the Murphy macrodynamic model. It shows how the previously developed methodology for interfacing a continuous-time macro model with a comparative static general equilibrium model (Cooper, McLaren and Powell (1985)) can be adapted to accommodate a macro model formulated in discrete time. The Murphy Model (MM) includes a model of the housing sector. This allows the interfaced ORANI/MM system to have investment in housing activity determined by MM, which (unlike ORANI) links housing investment directly to conditions in financial markets. A by-product of the interfacing procedure is an empirical estimate of the ORANI short run. Under a calibrating shock in which real government spending increases permanently by 10 per cent relative to control, and this fiscal expansion is financed about equiproportionately from bond issue and monetary expansion, the estimated ORANI short run turns out to be eight quarters, confirming earlier work. It was found possible to solve for 'as-if' shocks in the macroeconomic environment which, when injected into ORANI in stand-alone mode, would reproduce the macroeconomic projections of MM to a good first approximation. Thus it proved possible to use ORANI to disaggregate to the level of 112 industries the macroeconomic projections produced by MM.

Suggested Citation

  • Breece, James H. & McLaren, Keith R. & Murphy, Chris W. & Powell, Alan A., "undated". "Using the Murphy Model to Provide Short-Run Macroeconomics Closure for Orani," Department of Econometrics and Business Statistics Working Papers 267294, Monash University, Department of Econometrics and Business Statistics.
    • Handle: RePEc:ags:monebs:267294
    DOI: 10.22004/ag.econ.267294
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/267294/files/monash-117.pdf
    Download Restriction: no
    File URL: https://ageconsearch.umn.edu/record/267294/files/monash-117.pdf?subformat=pdfa
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.267294?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. is not listed on IDEAS
    2. James B Davies, 2009. "Combining microsimulation with CGE and macro modelling for distributional analysis in developing and transition countries," International Journal of Microsimulation, International Microsimulation Association, vol. 2(1), pages 49-56.
    3. Dixon, Peter B. & Koopman, Robert B. & Rimmer, Maureen T., 2013. "The MONASH Style of Computable General Equilibrium Modeling: A Framework for Practical Policy Analysis," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 23-103, Elsevier.
    4. James B. Davies, 2004. "Microsimulation, CGE and Macro Modelling for Transition and Developing Economies," WIDER Working Paper Series DP2004-08, World Institute for Development Economic Research (UNU-WIDER).

    More about this item

    Keywords

    ;

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • E17 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Forecasting and Simulation: Models and Applications

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:monebs:267294. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/dxmonau.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.