Interactive SFC models

I recently discovered that Kevin W. Capehart has written a piece of code in Mathematica from one of my Eviews files for the Godley – Lavoie Monetary economics book, and turned it into a CDF, to illustrate the paradox of thrift

To run the simulation you need to install the free Wolfram reader, and activate it.

This little tool is potentially very useful in exploring stock-flow models, which are tipically non linear, and therefore difficult to solve analitically. Creating a nice interface which allows the user to check model responses to different values of parameters and exogenous variables could help find the range of parameter values for which the model is producing stable (or unstable etc) solutions.

From Gabor Kurthy

Received from Gabor Kurthy (Corvinus University, Budapest)

“I’d like to contribute to the sfc-models.net page by sending the solution of model REG (pp.: 170-186).

In the PDF file you will find the solution of the model. If you are interested, I can send you a more detailed paper that contains the steps of the solution and some analysis as well (I haven’t translated that paper yet).

In the Excel file you will find the model: I wrote three macros to
(1) compute different steady states by changing the parameter set (policy variables included)
(2) see the evolution from state zero to the steady state (parameters and policy variables can be changed)
(3) see the effects of different shocks after changing the parameters or the policy variables.

I hope that you will find it useful.”

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:

  • Solving models over the internet

    I have dropped the “social network” part of this website, including the Forum section, so I am replicating here a post meant to start a discussion…

    I think it would be interesting and helpful to have some simple code for solving models over the internet, allowing visitors to a web site to change parameters, or size of a shock, and check the outcome of simulations.
    A nice example, for a different class of models, has been developed here: http://p.seppecher.free.fr/jamel
    Anyone interested in contributing?