Abstract
This study describes the simple model of the Danish economy which we used for a course on macroeconomics in Aalborg during the winter of 1987–8. Our model differed from the conventional textbook IS-LM model in that it included, right from the start, a representation of stock (or balance sheet) variables which were consistently interrelated with flow variables. The statistical embodiment of the theoretical model constituted a useful introduction to economic statistics and the functional relationships were studied as part of an introduction to econometrics. The model as a whole was then simulated to discover something about how a real life economy works.
We gratefully acknowledge substantial help from Ken Coutts, Helge Brink, Jan Fagerberg, Jack Johannesen, Jesper Jespersen, Tony Kristensen, David Newbery, and Steve Satchell. The usual disclaimer applies. We gratefully acknowledge financial assistance from the Leverhulme Trust.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Anyadike-Danes, M., Coutts, K. and Godley, W. (1989) ‘Consistent stock flow modelling of an open economy’ (Paper to the ‘50 Years After IS-LM’ conference at University of Aalborg, 1987, rewritten).
Blinder, A. and Solow, R. (1973) ‘Analytical foundations of fiscal policy’, in Blinder, A. et al., The Economics of Public Finance (Washington, D.C.: Brookings Institution).
Coutts, K., Godley, W. and Nordhaus, W. (1978) Industrial Pricing in the United Kingdom (Cambridge: Cambridge University Press).
Cripps, F. (1983) ‘Comment on Solow’s comment’, in Worswick, G. D. N. and Trevithick, F. A. (eds) (1983) Keynes and the Modern World (Cambridge: Cambridge University Press).
Godley, W. (1983) ‘Keynes and the management of real demand’, in Worswick, G. D. N. and Trevithick, F. A. (eds) (1983) Keynes and the Modern World (Cambridge: Cambridge University Press).
Godley, W. and Cripps, F. (1983) Macroeconomics (London: Fontana).
Hall, R. E. and Taylor, M. P. (1988) Macroeconomics (New York: Norton).
Malinvaud, E. (1977) The Theory of Unemployment Reconsidered (Oxford: Basil Blackwell).
Solow, R. (1983) ‘Comments on Godley’, in Worswick, G. D. N. and Trevithick, F.A. (eds) (1983) Keynes and the Modern World (Cambridge: Cambridge University Press).
Tobin, J. and Buiter, W. (1976) ‘The long-run effects of fiscal and monetary policy or aggregate demand’, in Stein, J. L. (ed.), Monetarism (Amsterdam: North-Holland).
Worswick, G. D. N. and Trevithick, F. A. (eds) (1983) Keynes and the Modern World (Cambridge: Cambridge University Press).
Editor information
Editors and Affiliations
Copyright information
© 1992 Helge Brink
About this chapter
Cite this chapter
Godley, W., Zezza, G. (1992). A Simple Stock Flow Model of the Danish Economy. In: Brink, H. (eds) Themes in Modern Macroeconomics. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-12511-1_8
Download citation
DOI: https://doi.org/10.1007/978-1-349-12511-1_8
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-12513-5
Online ISBN: 978-1-349-12511-1
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)