7 Sep 2012 ... Macroeconomic Models. ... Version 1.0. Very Preliminary Version ... Fisher S.,
Startz R. (2008), Macroeconomics, 10th Edition The Mc-Graw-Hill.
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Macro Models: un APP for Macroeconomic Models. User Manual 1.0 Gianluigi Coppola and Natalia Marsilia Dipartimento di Scienze Economiche e Statistiche. Universit`a di Salerno. Italy, CELPE Centro di Economia del Lavoro e di Politica Economica
5. September 2012
Online at https://mpra.ub.uni-muenchen.de/41071/ MPRA Paper No. 41071, posted 7. September 2012 10:08 UTC
MACRO MODELS UN APP FOR MACROECONOMIC MODELS User Manual
Version 1.0 Very Preliminary Version
Gianluigi Coppola1
Natalia Marsilia2
1
Researcher in Economics. Department of Economics and Statistics (DISES). University of Salerno. Email:
[email protected] 2 Physicist, Software Development Expert. Email:
[email protected]
1
The Income-Expenditure Model
1. Introduction This paper is simply a user manual of un APP that simulates the widely used Macroeconomic Models.
2. Income Expenditure Model 1. Legenda Input ̅ NX C
G TR t
Autonomous (exogenous) Consumption Net Investment Net Export Marginal propensity to consume
Government Spending Net Government Transfers Income tax rate
Output NMP Multiplier Eq. Income Eq. Consumption Balance ∆Income
Net Marginal Propensity to consume Keynesian Multiplier Equilibrium Income Equilibrium Consumption Government Surplus Income Variation
Graph EAD Y tY C I D B
Autonomous Aggregate Demand Income income tax Consumption Investment Government Surplus Government Debt
2
a. The Model is the Income. The Aggregate Demand is given by [1.]
= + + +
Where [2.]
= ̅
[3.]
=
[4.]
=
The direct Tax Revenue is equal to [5.]
=
where t is the income tax rate TR is the Government Transfers [6.]
=
The Disposable Income is defined as [7.]
= + −
[8.]
= + −
[9.]
= 1 − +
The consumption function depends on Disposable Income (YD) [10.]
= ̅ +
[11.]
= ̅ + 1 − +
[12.]
= + + + +
[13.]
= ̅ + 1 − + + + +
[14.]
= ̅ + 1 − ௧ + + + +
[15.]
= ̅ + + + + + 1 −
In Equilibrium: Supply(Y)= Demand (AD) 3
[16.]
=
a. Results Equilibrium Income
ሺത + + 0 + + ሻ
[17.]
ܻ =
[18.]
= ̅ + + + +
Multipliers
Expenditure’s multiplier [19.]
̅
= = = = బ
Transfer’s multiplier [20.]
=
Tax multiplier [21.]
=
మ
Balance Surplus (BS) is equal to [22.]
ܣܶ = ܵܤ− ܩ− ܴܶ
[23.]
ܻݐ = ܵܤ− ܩ− ܴܶ
[24.]
ݐ = ܵܤሺ ܩ+ ܴܿܶ + ܫ+ ܰܺ + ܥሻ − ܩ− ܴܶ
3. References Blanchard O. (2009), Macroeconomics 5th Edition Pearson Education Inc Branson W. H. (1989), Macroeconomic Theory and Policy, 3rd Edition , Harper & Row, New York Dornbusch R., Fisher S., Startz R. (2008), Macroeconomics, 10th Edition The Mc-Graw-Hill Companies, srl 4
Samuelson P. (1939) Interaction between the Multiplier Analysis and the Principle of Acceleration The Review of Economic and Statistics, Vol 21. No. 2 pp 75-78
4. APPENDIX Results Table 1.1
ܿሺ1 − ݐሻ 1 1 − ܿሺ1 − ݐሻ
Net Marginal Propensity Multiplier
Equilibrium Income Consumption Balance Surplus
ܻ =
1 ሺത + + 0 + + ሻ 1 − ܿሺ1 − ݐሻ ̅ + 1 − ா +
ܻݐ = ܵܤ− ܩ− ܴܶ
5
