Files from SF lab, day #2

On the second day we introduce an investment function and explore model properties by shocking parameters.
Lab Files #2
Rename the .txt file to .prg to run it into Eviews
Finally we prepare a more complex accounting structure for the last lab exercise (excel file)

Stock-flow models lab at Levy

In the first day at the stock-flow lab at the Minsky Summer Seminar we show how to build a very simple model.
Files from Class #1
We note that although the accounting is consistent, the model structure is inconsistent since the stock of capital is growing while gdp converges to a steady state.

Warning for those who already downloaded the zip file! The program file I published yesterday was incomplete. I have now updated it, please download it again.

Stock-flow lab at the Minsky Summer Seminar

The stock-flow lab at the Minsky Summer School was a success, according to my personal view…
Some students asked me to make materials availble on the web, since we did not use the readily available programs I had previously published, and I have therefore created a Walk-trough for what we did during the three days.
Students attending were great, keeping their attention to the last minute of the lab, even after a long working day.

Files available:

  • Course on sfc models in Pavia

    I have been invited to give a course on sfc models in Pavia (Dec.14-16), along with a seminar on the current financial crisis (my slides, in Italian, are here).
    Here are the slides I used to introduce the course. The course developed a simple sfc-model from the very beginning:

    Eviews models are available here. They include

    • model1: a simple sfc model with banks. Income distribution is fixed, investment growth is given. The hidden equation is deposits = loans
    • model2: same as model 1, but with more reasonable values for capital depreciation, so that all stocks have reasonable values
    • model3: first attempt to introduce a price for equities and portfolio choice between equities and deposits, but the accounting is wrong…
    • model4: as model 3, but the accounting (for the demand for loans) has been fixed
    • model5: as model 4, with a better specification for expected wealth
    • model6: investment growth now depends on capacitiy utilization and the cost of borrowing
    • model7: endogenous price level, accounting at constant and current prices

    The next logical step would be to introduce a Phillips curve…

    An introduction to empirical SFC modeling

    For who is interested in empirical stock-flow-consistent models, I prepared some Eviews programs with comments, which can be downloaded from my teaching platform here.
    Register, and request enrollment to the course “Intoduction to macroeconometric models”