Modelling National Economic System: A Case of the Croatian Economy

Sovilj Siniša (), Marina Tkalec, Pripužić Dominik () and Kostanjčar Zvonko ()
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Sovilj Siniša: Associate Professor Faculty of Informatics Juraj Dobrila University of Pula (Address: Rovinjska 14, 52100 Pula), Croatia
Pripužić Dominik: Economic Analyst Croatian National Bank Croatia
Kostanjčar Zvonko: PhD Full Professor Faculty of Electrical Engineering and Computing, University of Zagreb Croatia

South East European Journal of Economics and Business, 2023, vol. 18, issue 1, 115-144

Abstract: In this study we evaluate a national economic model using a system dynamics approach. We use a set of macroeconomic data for a transition economy to validate the model behaviour in the past, and then simulate the alternative paths of key macroeconomic variables. Instead of studying only a fraction of the economy, or using simple and abstract models, we build a large-scale national economic model. As the study is based on system dynamics information feedback, it provides additional insights about the macroeconomic effects of the economic policy, making it a valuable tool for economic policy analysis. Such insights are instrumental for understanding the total effects of economic policies and their full economic consequences. To demonstrate this, we have simulated one actual economic policy intervention and its alternative scenario.

Keywords: national economic model; system dynamics; macroeconomics; economic policy analysis (search for similar items in EconPapers)
JEL-codes: C63 C65 E47 E62 O41 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:seejeb:v:18:y:2023:i:1:p:115-144:n:14

DOI: 10.2478/jeb-2023-0009

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