This paper constructs a regional dynamic macroeconomic model with an eclectic, broadly Keynesian and behavioural flavour. The model, which is parameterized on Scottish data, is used to identify the impact of expectations and business confidence on regional resilience. Simulations compare the evolution of the regional economy after a temporary negative export shock under a range of investment functions. The mainstream perfect foresight formulation generates a reduction in activity, which is small and is limited to the duration of the shock. The heuristic-based, imperfect-information investment models produce more negative, longer-lasting and unstable adjustment paths.
This site includes records provided by Elsevier's Data Monitor product. University of Strathclyde does not control or guarantee the accuracy, relevance, or completeness of the information contained in such records and accepts no responsibility or liability for such information.
|Date made available||23 Feb 2023|
|Date of data production||2020|