Abstract
This chapter is a compendium of those MM equations which have not been covered above in Chapters 5 through 23. All of the remaining equations are identities, and many of them deal with stock-flow accounting. However we start, in section 24.2, with the identities for gross national expenditure and for gross domestic product. Stock-flow identities are listed in section 24.3, and lead-lag identities in section 24.4. Finally, three definitional identities used in the implementation of MM — which were encountered in the exposition above, but not formally listed there as equations of the model — are set out in section 24.5.
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Note that, in order to avoid double counting, the cost of the domestic commodity used to produce housing services from the housing stock (see Chapter 9) must be deducted from the value of such services, since all of the domestic commodity has already been included in expenditure.
Because stocks can also be run down, this item of ‘spending’ can be negative.
The product ‘general government services’ is valued at input cost; the inputs are 100 per cent labour, EG being employment in the general government sector.
Recall that exchanges rates in MM are measured in foreign dollars per one Australian dollar.
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© 1995 Springer-Verlag Berlin Heidelberg
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Powell, A.A., Murphy, C.W. (1995). National-Accounting, Stock-Flow and Miscellaneous Identities. In: Inside a Modern Macroeconometric Model. Lecture Notes in Economics and Mathematical Systems, vol 428. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-00771-6_24
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DOI: https://doi.org/10.1007/978-3-662-00771-6_24
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-60027-5
Online ISBN: 978-3-662-00771-6
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