[Jamel]

Thanks for your interesting replies.

I have some further remarks and suggestions.

Firstly, I think that error handling on EViews is quite complete and acceptable relatively to other software as STATA or GAUSS.

Secondly, in works of Jean-Louis Brillet, you can find supply constraints in a macroeconomic model solved with the EViews package.

Nevertheless, according to me the most promising way in SFC modelling is agent-based modelling. I think that EViews (or even maybe R)  could not be fitted to solve this kind of models. We could use programming language as Java.

The MINSKY initiative started by Steve Keen seems to be very attractive as it underlines the role of the banking system in macroeconomic modelling.

Find here (http://www.economist.com/news/finance-and-economics/21569752-efforts-are-under-way-improve-macroeconomic-models-new-model-army), an article of The Economist in which alternatives to DSGE modelling are quoted (including the MINSKY initiative).

Jamel

 

 

[Jamel]

Dear all,

Thank you very much for this very exciting proposal. I propose some preliminary comments on this proposal.

First, I don’t see why EViews is not a programming software. I think you should precise what you heard by “programming software”. EViews has a very convenient Windows interface but you can choose to not use it. As witnessed by the Cambridge Alphametrics Model (CAM) of Francis Cripps, EViews can be adapted to solve very large complex empirical models in which ceilings and floors can be introduced. Besides, in their reference textbook, Wynne Godley and Marc Lavoie had used the MODLER package.

Second, I don’t see any reference to supply and to behavioral expectations  In most cases, SFC models doesn’t include any supply constraint. Even if most of them strongly reject Say’s law, I think that these kind of modelling could be not adapted in some cases and especially in the case of the euro crisis. We should introduce some supply constraints in order to be more realistic in our policy prescriptions.

Anticipations could be also problematic. I think this point is crucial in the perspective of challenging mainstream economics. Even if this point is already partially analyzed in the Godley-Lavoie textbook, I think we need to going further (…together ?) on this point to propose a fully-fledged alternative to rational expectations.

I hope that these remarks will stimulate further discussions !

Yours faithfully,

Jamel Saadaoui
Novice in SFC modelling

[Author]

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