Should the Financial Sphere be Included in Empirical Macro-CGE Models? The Case of Economic Liberalization in Argentina

Dario Debowicz

No 331891, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: The significant real effects arising from the present international financial crisis suggest that the workings of the financial sphere significantly affect the value of social production, the distribution of income and wealth, and the magnitude of income poverty, all important social welfare indicators. Reflecting this, should macro CGE models take the financial dimension into account? To shed some light on this issue, I extend the IFPRI Standard Model to make it dynamic and take consideration of the financial sphere, and then I compare the outcomes of historical simulations coming from these models against observed variables for the Argentinean economy in the 1991-2006 period. Preliminary results suggest that the inclusion of the financial dimension may help the CGE model to historically track observed variables.

Keywords: Research Methods/Statistical Methods; Financial Economics (search for similar items in EconPapers)
Pages: 36
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/331891/files/3567.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:pugtwp:331891

Access Statistics for this paper

More papers in Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().