Abstract
In this chapter we demonstrate how ORANI-INT can be used to conduct comparative-dynamic simulations. The role of the intertemporal mechanisms in the model are highlighted via a detailed analysis of the results of five illustrative experiments. These experiments have in common a permanent expansion in government expenditure. The effects of such a shock are examined both with and without forward-looking behaviour. Also, the effects of announcing such a policy in advance of its implementation are compared to the case where the shock is implemented without warning.
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© 2000 Springer-Verlag Berlin Heidelberg
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Malakellis, M. (2000). ORANI-INT’s Simulation Properties With and Without Forward-looking Behaviour. In: Integrated Macro-Micro-Modelling Under Rational Expectations. Contributions to Economics. Physica, Heidelberg. https://doi.org/10.1007/978-3-642-57660-7_6
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DOI: https://doi.org/10.1007/978-3-642-57660-7_6
Publisher Name: Physica, Heidelberg
Print ISBN: 978-3-7908-1274-9
Online ISBN: 978-3-642-57660-7
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