Flow and Stock Equilibrium in a Dynamic Metzler Model*

Branson, William H.; Teigen, Ronald L.

doi:10.1111/j.1540-6261.1976.tb03216.x

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A stock‐flow consistent macro‐econometric model of the UK economy—part I

Davis

1987

J of Applied Econometrics

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This paper surveys briefly the main theoretical developments in the analysis of stock and flow integration in macro-economics, then proceeds to use this corpus of theory as a critique of the structure of existing macro-econometric models of the British economy. An outline is then suggested for a model which would take all of these stock-flow effects into account, given the macro-economic data currently available. In a following paper (Davis, 1987) we give a detailed account of estimation and simulation of such a stock-flow consistent model. *It should be emphasized that till recently this was partly also a consequence both of lack of data and of a relatively short economic policy horizon.

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