Forward-looking and myopic regional Computable General Equilibrium models: How significant is the distinction?

Patrizio Lecca, Peter McGregor and John Swales ()

Economic Modelling, 2013, vol. 31, issue C, 160-176

Abstract: We present a stylized intertemporal forward-looking model that accommodates key regional economic features, an area where the literature is not well developed. The main difference, from the standard applications, is the role of saving and its implication for the balance of payments. Though maintaining dynamic forward-looking behaviour for agents, the rate of private saving is exogenously determined and so no neoclassical financial adjustment is needed. Also, we focus on the similarities and the differences between myopic and forward-looking models, highlighting the divergences amongst the main adjustment equations and the resulting simulation outcomes.

Keywords: Myopic and forward-looking behaviour; Computable General Equilibrium models; Regional adjustment (search for similar items in EconPapers)
JEL-codes: C68 D58 D91 R10 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (24)

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Related works:
Working Paper: Forward Looking and Myopic Regional Computable General Equilibrium Models. How Significant is the Distinction? (2012)
Working Paper: Forward Looking and Myopic Regional Computable General Equilibrium Models. How Significant is the Distinction? (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:31:y:2013:i:c:p:160-176

DOI: 10.1016/j.econmod.2012.11.010

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