Resilience in a behavioural/Keynesian regional model

Grant Allan; Gioele Figus; Peter G. McGregor; J. Kim Swales

doi:10.1177/0308518X20941775

Resilience in a behavioural/Keynesian regional model

Grant Allan, Gioele Figus, Peter G. McGregor, J. Kim Swales

Research output: Contribution to journal › Article › peer-review

5 Citations (Scopus)

73 Downloads (Pure)

Abstract

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.

Original language	English
Article number	53(4)
Pages (from-to)	858-876
Number of pages	19
Journal	Environment and Planning A
Volume	53
Issue number	4
Early online date	13 Jul 2020
DOIs	https://doi.org/10.1177/0308518X20941775
Publication status	Published - 1 Jun 2021

Keywords

macroeconomics
Keynesian model
computable general equilibrium

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10.1177/0308518X20941775Licence: CC BY 4.0

Allan-etal-EPA-2020-Resilience-in-a-behavioural-Keynesian-regionalFinal published version, 341 KBLicence: CC BY 4.0

Gioele Figus
- gioele.figusstrath.acuk
- Economics - Senior Lecturer
Person: Academic

Data for: "Resilience in a behavioural/Keynesian regional model"
Allan, G. (Creator), Figus, G. (Creator), McGregor, P. G. (Creator) & Swales, J. K. (Contributor), figshare, 23 Feb 2023
DOI: 10.25384/sage.c.5060784.v1
Dataset

5 Citations
1 Other report

Resilience in a Behavioural/Keynesian Regional Model - Annex : Additional Variables and Sensitivity Analysis
Allan, G., Figus, G., McGregor, P. & Swales, K., 9 Jun 2020, Glasgow: University of Strathclyde. 9 p.
Research output: Book/Report › Other report

Open Access
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30 Downloads (Pure)

Enhancing analytical capacity and knowledge through economic modelling to strengthen regional policy-making in Scotland, Northern Ireland and Europe.
Allan, G. (Main contact), McGregor, P. (Participant), Swales, J. (Participant), Lecca, P. (Participant), Roy, G. (Participant), Figus, G. (Participant) & Lisenkova, K. (Participant)
Impact: Impact - for External Portal › Economic and commerce, Policy and legislation

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Cite this

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abstract = "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.",

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author = "Grant Allan and Gioele Figus and McGregor, {Peter G.} and Swales, {J. Kim}",

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N2 - 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.

AB - 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.

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KW - Keynesian model

KW - computable general equilibrium

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DO - 10.1177/0308518X20941775

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Resilience in a behavioural/Keynesian regional model

Abstract

Keywords

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Data for: "Resilience in a behavioural/Keynesian regional model"

Research output

Resilience in a Behavioural/Keynesian Regional Model - Annex : Additional Variables and Sensitivity Analysis

Impacts

Enhancing analytical capacity and knowledge through economic modelling to strengthen regional policy-making in Scotland, Northern Ireland and Europe.

Cite this