A Disequilibrium Adjustment Mechanism for CPE Macroeconometric Models: Initial Testing on SOVMOD.

Abstract

This report describes a disequilibrium adjustment mechanism for use in macroeconometric models of centrally planned economies. The mechanism is one that ensures that certain balances between supply and demand in specific sectors, or for specific factors, are adhered to in the model's solution. Given an initial set of endogenously determined variable values, the search for balance is designed to minimize the deviation from these initial values. while at the same time satisfying the balancing constraints. Results of tests of the mechanism as introduced into the SRI-WEFA Soviet Econometric Model are also presented. These tests focused on reasonableness of the reaction of the model to the addition of the adjustment mechanism, changes in balances, and changes in error functions measuring deviations. (Author)

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Document Details

Document Type
Technical Report
Publication Date
Feb 01, 1979
Accession Number
ADA082140

Entities

People

  • Daniel L. Bond
  • Everett J. Rutan Iii

Organizations

  • SRI International

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DTIC Thesaurus Topics

  • Agriculture
  • Chemical Industry
  • Coefficients
  • Commerce
  • Construction
  • Delphi Method
  • Economic Systems
  • Economics
  • Equations
  • Ferrous Metallurgy
  • International Trade
  • Materials
  • Mechanical Properties
  • Metallurgy
  • Money
  • Planned Economy
  • Ussr

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  • Economics
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