Forward looking versus myopic regional computable general equilibrium models: how significant is the distinction?

Patrizio Lecca, Peter McGregor, John Swales

Research output: Contribution to conferencePaper

Abstract

We present a stylized intertemporal forward-looking model able that accommodates key regional economic features, an area where the literature is not well developed. The main difference, from the standard applications, is the role of saving and its implication for the balance of payments. Though maintaining dynamic forward-looking behaviour for agents, the rate of private saving is exogenously determined and so no neoclassical financial adjustment is needed. Also, we focus on the similarities and the differences between myopic and forward-looking models, highlighting the divergences among the main adjustment equations and the
resulting simulation outcomes.

Conference

ConferenceNorth American Regional Science Association
CountryUnited States
CitySan Francisco
Period19/11/0921/11/09

Fingerprint

Forward-looking models
Computable general equilibrium model
Balance of payments
Simulation
Forward-looking behavior
Divergence
Regional economics
Private savings

Keywords

  • regional economic features
  • intertemporal forward-looking model

Cite this

Lecca, P., McGregor, P., & Swales, J. (2009). Forward looking versus myopic regional computable general equilibrium models: how significant is the distinction?. Paper presented at North American Regional Science Association, San Francisco, United States.
Lecca, Patrizio ; McGregor, Peter ; Swales, John. / Forward looking versus myopic regional computable general equilibrium models : how significant is the distinction?. Paper presented at North American Regional Science Association, San Francisco, United States.
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abstract = "We present a stylized intertemporal forward-looking model able that accommodates key regional economic features, an area where the literature is not well developed. The main difference, from the standard applications, is the role of saving and its implication for the balance of payments. Though maintaining dynamic forward-looking behaviour for agents, the rate of private saving is exogenously determined and so no neoclassical financial adjustment is needed. Also, we focus on the similarities and the differences between myopic and forward-looking models, highlighting the divergences among the main adjustment equations and theresulting simulation outcomes.",
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Lecca, P, McGregor, P & Swales, J 2009, 'Forward looking versus myopic regional computable general equilibrium models: how significant is the distinction?' Paper presented at North American Regional Science Association, San Francisco, United States, 19/11/09 - 21/11/09, .

Forward looking versus myopic regional computable general equilibrium models : how significant is the distinction? / Lecca, Patrizio; McGregor, Peter; Swales, John.

2009. Paper presented at North American Regional Science Association, San Francisco, United States.

Research output: Contribution to conferencePaper

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T1 - Forward looking versus myopic regional computable general equilibrium models

T2 - how significant is the distinction?

AU - Lecca, Patrizio

AU - McGregor, Peter

AU - Swales, John

PY - 2009

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N2 - We present a stylized intertemporal forward-looking model able that accommodates key regional economic features, an area where the literature is not well developed. The main difference, from the standard applications, is the role of saving and its implication for the balance of payments. Though maintaining dynamic forward-looking behaviour for agents, the rate of private saving is exogenously determined and so no neoclassical financial adjustment is needed. Also, we focus on the similarities and the differences between myopic and forward-looking models, highlighting the divergences among the main adjustment equations and theresulting simulation outcomes.

AB - We present a stylized intertemporal forward-looking model able that accommodates key regional economic features, an area where the literature is not well developed. The main difference, from the standard applications, is the role of saving and its implication for the balance of payments. Though maintaining dynamic forward-looking behaviour for agents, the rate of private saving is exogenously determined and so no neoclassical financial adjustment is needed. Also, we focus on the similarities and the differences between myopic and forward-looking models, highlighting the divergences among the main adjustment equations and theresulting simulation outcomes.

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KW - intertemporal forward-looking model

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M3 - Paper

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Lecca P, McGregor P, Swales J. Forward looking versus myopic regional computable general equilibrium models: how significant is the distinction?. 2009. Paper presented at North American Regional Science Association, San Francisco, United States.