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A global multi-sectoral model in local currencies

Author

Listed:
  • Yano, Takashi

Abstract

Economic agents make their decisions by focusing on the economic performance of their economies in their currencies rather than in a foreign currency. This shows that a multi-country economic model in local currencies is suitable to analyze global economic issues. However, international input-output tables are denominated in a specific currency such as the US dollar. Employing the OECD Intercountry Input-Output Tables, this paper presents a method to convert the international input-output tables in U.S. dollars and current prices to those in local currencies and constant prices. In addition, the structure of a global model with economies of scale and imperfect competition is illustrated. A numerical example is also demonstrated in order to show the applicability of the model.

Suggested Citation

  • Yano, Takashi, 2018. "A global multi-sectoral model in local currencies," IDE Discussion Papers 703, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper703
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    File URL: https://ir.ide.go.jp/record/50271/files/IDP000703_001.pdf
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    References listed on IDEAS

    as
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    3. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

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    JEL classification:

    • C54 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Quantitative Policy Modeling
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • F47 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Forecasting and Simulation: Models and Applications

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