Resilience in a behavioural/Keynesian regional computable general equilibrium model

Research output: Contribution to conferencePaper

Abstract

This paper constructs a regional dynamic macroeconomic model with an eclectic, broadly Keynesian and behavioural flavour. The model, which is parameterised 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 neo-classical perfect-foresight form 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.

Conference

Conference27th International Input-Output Association Conference & 9th Edition of the International School of I-O Analysis
CountryUnited Kingdom
CityGlasgow
Period30/06/195/07/19

Fingerprint

Resilience
Computable general equilibrium model
Heuristics
Simulation
Confidence
Macroeconomic models
Imperfect information
Perfect foresight
Regional economy
Regional dynamics

Keywords

  • regional resilience
  • regional economy
  • general equilibrium model

Cite this

Figus, G., Allan, G., McGregor, P. G., & Swales, J. K. (2019). Resilience in a behavioural/Keynesian regional computable general equilibrium model. Paper presented at 27th International Input-Output Association Conference & 9th Edition of the International School of I-O Analysis, Glasgow, United Kingdom.
Figus, Gioele ; Allan, Grant ; McGregor, Peter G. ; Swales, J. Kim. / Resilience in a behavioural/Keynesian regional computable general equilibrium model. Paper presented at 27th International Input-Output Association Conference & 9th Edition of the International School of I-O Analysis, Glasgow, United Kingdom.26 p.
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Figus, G, Allan, G, McGregor, PG & Swales, JK 2019, 'Resilience in a behavioural/Keynesian regional computable general equilibrium model' Paper presented at 27th International Input-Output Association Conference & 9th Edition of the International School of I-O Analysis, Glasgow, United Kingdom, 30/06/19 - 5/07/19, .

Resilience in a behavioural/Keynesian regional computable general equilibrium model. / Figus, Gioele; Allan, Grant; McGregor, Peter G.; Swales, J. Kim.

2019. Paper presented at 27th International Input-Output Association Conference & 9th Edition of the International School of I-O Analysis, Glasgow, United Kingdom.

Research output: Contribution to conferencePaper

TY - CONF

T1 - Resilience in a behavioural/Keynesian regional computable general equilibrium model

AU - Figus, Gioele

AU - Allan, Grant

AU - McGregor, Peter G.

AU - Swales, J. Kim

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Y1 - 2019/7/5

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AB - This paper constructs a regional dynamic macroeconomic model with an eclectic, broadly Keynesian and behavioural flavour. The model, which is parameterised 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 neo-classical perfect-foresight form 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.

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KW - regional economy

KW - general equilibrium model

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M3 - Paper

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Figus G, Allan G, McGregor PG, Swales JK. Resilience in a behavioural/Keynesian regional computable general equilibrium model. 2019. Paper presented at 27th International Input-Output Association Conference & 9th Edition of the International School of I-O Analysis, Glasgow, United Kingdom.