Template-Type: ReDIF-Paper 1.0
Author-Name: Patrizio Lecca
Author-Name-First: Patrizio
Author-Name-Last: Lecca
Author-Email: patrizio.lecca@strath.ac.uk
Author-Workplace-Name: Department of Economics, Fraser of Allander Institute, The University of Strathclyde
Author-Name: Peter McGregor
Author-Name-First: Peter
Author-Name-Last: McGregor
Author-Email: p.mcgregor@strath.ac.uk
Author-Workplace-Name: Department of Economics, The University of Strathclyde
Author-Name: Kim Swales
Author-Name-First: Kim
Author-Name-Last: Swales
Author-Email: j.k.swales@strath.ac.uk
Author-Workplace-Name: Department of Economics, Fraser of Allander Institute, The University of Strathclyde
Title: Forward Looking and Myopic Regional Computable General Equilibrium Models. How Significant is the Distinction?
Abstract: We present a stylized intertemporal forward-looking model able that accommodates key regional economic features, an area where the literature is not well developed. The main difference, from the standard applications, is the role of saving and its implication for the balance of payments. Though maintaining dynamic forward-looking behaviour for agents, the rate of private saving is exogenously determined and so no neoclassical financial adjustment is needed. Also, we focus on the similarities and the differences between myopic and forward-looking models, highlighting the divergences among the main adjustment equations and the resulting simulation outcomes.
Length: 57 pages
Creation-Date: 2011-11
Revision-Date: 
Publication-Status: Published
File-URL: http://www.strath.ac.uk/media/1newwebsite/departmentsubject/economics/research/researchdiscussionpapers/2011/11-33-Final.pdf
File-Format: Application/pdf
Number: 1133
Classification-JEL: C68; D58; D91; R10
Keywords: Myopic and Forward-looking Behaviour, Computable General Equilibrium Models, Regional Adjustment.
Handle: RePEc:str:wpaper:1133