Using the Murphy Model to Provide Short‐run Macroeconomic Closure for ORANI

JAMES H. BREECE, KEITH R. McLAREN, CHRISTOPHER W. MURPHY, ALAN A. POWELL

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4 Citations (Scopus)

Abstract

A macro model incorporating rational expectations in financial markets (the Murphy Model–MM) is used to endogenize the macroeconomic environment for a comprehensive general equilibrium model (ORANI). The interface exploits the existence of variables which are endogenous to both models, calibrating on a shock to government spending. Prospective benefits include: (1) to the numerous policy oriented users of ORANI, a facility allowing the macroeconomic environment to be determined by a macrodynamic model such as MM; (2) to these users, reassurance that ORANI's short‐run translates in calendar time to about two years; (3) to the clientele of a macro model, the possibility of much more detailed projections.

Original languageEnglish
Pages (from-to)292-314
Number of pages23
JournalEconomic Record
Volume70
Issue number210
DOIs
Publication statusPublished - 1 Jan 1994

Cite this

BREECE, JAMES H. ; McLAREN, KEITH R. ; MURPHY, CHRISTOPHER W. ; POWELL, ALAN A. / Using the Murphy Model to Provide Short‐run Macroeconomic Closure for ORANI. In: Economic Record. 1994 ; Vol. 70, No. 210. pp. 292-314.
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Using the Murphy Model to Provide Short‐run Macroeconomic Closure for ORANI. / BREECE, JAMES H.; McLAREN, KEITH R.; MURPHY, CHRISTOPHER W.; POWELL, ALAN A.

In: Economic Record, Vol. 70, No. 210, 01.01.1994, p. 292-314.

Research output: Contribution to journalArticleResearchpeer-review

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