The Integration of Macro and Microeconomic Relations in Dynamic Policy Models : The Case of Saving and Investment Behavior /

This paper examines how two types of fiscal policy models, namely, dynamic macroeconomic models and applied general equilibrium models, have integrated macro- and microeconomic relationships within a framework of intertemporal equilibrium. After emphasizing the potential advantages of integrating ma...

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Autor principal: Bovenberg, Ary
Format: Revista
Idioma:English
Publicat: Washington, D.C. : International Monetary Fund, 1990.
Col·lecció:IMF Working Papers; Working Paper ; No. 1990/034
Accés en línia:Full text available on IMF
Descripció
Sumari:This paper examines how two types of fiscal policy models, namely, dynamic macroeconomic models and applied general equilibrium models, have integrated macro- and microeconomic relationships within a framework of intertemporal equilibrium. After emphasizing the potential advantages of integrating macro- and microeconomic relations, the study discusses the limitations of intertemporal equilibrium models--in particular the weaknesses of saving and investment theories incorporated in the models. It concludes that, despite recent important advances, policymakers need to exercise caution when they interpret results derived from these models.
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Descripció física:1 online resource (24 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Accés:Electronic access restricted to authorized BRAC University faculty, staff and students