scholarly journals Bridging the Gap between Economic Modelling and Simulation: A Simple Dynamic Aggregate Demand-Aggregate Supply Model with Matlab

2018 ◽  
Vol 2018 ◽  
pp. 1-13 ◽  
Author(s):  
José M. Gaspar
Keyword(s):  
Steady State ◽  
Numerical Solutions ◽  
Aggregate Demand ◽  
Economic Modelling ◽  
Aggregate Supply ◽  
Parameter Values ◽  
The Impact ◽  
The Relationship ◽  
Fiscal And Monetary Policy ◽  
Simulations In Economics

This paper aims to connect the bridge between analytical results and the use of the computer for numerical simulations in economics. We address the analytical properties of a simple dynamic aggregate demand and aggregate supply (AD-AS) model and solve it numerically. The model undergoes a bifurcation as its steady state smoothly interchanges stability depending on the relationship between the impact of real interest rate on demand for liquidity and how fast agents revise their expectations on inflation. Using code embedded into a unique function in Matlab, we plot the numerical solutions of the model and simulate different dynamic adjustments using different parameter values. The same function also accommodates the analysis of the impacts of fiscal and monetary policy and supply side shocks on the steady state and the transition dynamics of the model.

SEMI-ANALYTICAL SOLUTIONS FOR THE BRUSSELATOR REACTION–DIFFUSION MODEL

2017 ◽  
Vol 59 (2) ◽  
pp. 167-182 ◽  
Author(s):  
H. Y. ALFIFI
Keyword(s):  
Steady State ◽  
Hopf Bifurcation ◽  
Partial Differential Equations ◽  
Differential Equations ◽  
Analytical Solutions ◽  
Numerical Solutions ◽  
Partial Differential ◽  
Analytical Results ◽  
Transient Solutions ◽  
The Impact

Semi-analytical solutions are derived for the Brusselator system in one- and two-dimensional domains. The Galerkin method is processed to approximate the governing partial differential equations via a system of ordinary differential equations. Both steady-state concentrations and transient solutions are obtained. Semi-analytical results for the stability of the model are presented for the identified critical parameter value at which a Hopf bifurcation occurs. The impact of the diffusion coefficients on the system is also considered. The results show that diffusion acts to stabilize the systems better than the equivalent nondiffusive systems with the increasing critical value of the Hopf bifurcation. Comparison between the semi-analytical and numerical solutions shows an excellent agreement with the steady-state transient solutions and the parameter values at which the Hopf bifurcations occur. Examples of stable and unstable limit cycles are given, and Hopf bifurcation points are shown to confirm the results previously calculated in the Hopf bifurcation map. The usefulness and accuracy of the semi-analytical results are confirmed by comparison with the numerical solutions of partial differential equations.

scholarly journals DAMPAK FLUKTUASI NILAI TUKAR TERHADAP OUTPUT DAN HARGA: PERBANDINGAN DUA REZIM NILAI TUKAR

2007 ◽  
Vol 10 (1) ◽  
pp. 3-22
Author(s):  
Jardine A Husman
Keyword(s):  
Exchange Rate ◽  
Fiscal Policy ◽  
Exchange Rate Regime ◽  
Aggregate Demand ◽  
Import Price ◽  
Regime Switch ◽  
Aggregate Supply ◽  
Rate Fluctuation ◽  
The Exchange Rate ◽  
The Impact

This paper analyzes the impact of exchange rate fluctuation on the output and price in two different regimes. The model employed distinguishes four different sources of impacts on the output and price, namely the anticipated and the un-anticipated exchange rate movement, the aggregate demand and the aggregate supply shock.The result confirms the impact of the exchange rate regime switch on how the exchange rate influences the output. The net impact of Rupiah depreciation will expand the output, indicating the dominance of the aggregate the demand shock through the competitive advantage than the aggregate supply shock through import price effect.The regime switch also alters the effectiveness of the monetary and the fiscal policy on the output. The magnitude of monetary and fiscal policy is much larger than the exchange rate impact on output, both managed and free floating regime.Keywords: exchange rate, anticipated vs. unanticipated depreciation, supply vs. demand channels.JEL Classification: F41, F43, F31

scholarly journals Regional Aspects of Demand and Supply Shocks: Economy of the Khabarovsk Territory During a Pandemic

2021 ◽  
Vol 17 (2) ◽  
pp. 165-181
Author(s):  
Artyom Isaev ◽  
Keyword(s):  
Negative Impact ◽  
Supply And Demand ◽  
Initial Period ◽  
Aggregate Demand ◽  
Point Of View ◽  
Retail Trade ◽  
Natural Rate ◽  
Regional Labor Market ◽  
Aggregate Supply ◽  
The Impact

The article provides an overview of the short-term dynamics of macroeconomic indicators for the Khabarovsk Territory during the COVID-19 pandemic after the introduction of temporary restrictive measures in April and May 2020. The impact of these measures extended both to the elements of regional aggregate demand and aggregate supply. From the point of view of the theory of short-run economic fluctuations, aggregate supply and demand shocks, such as those that occurred in the initial period of the pandemic, lead to a reduction in aggregate output followed by an increase in actual and natural rate of unemployment. Expectations have an additional negative impact since the growth of uncertainty gives rise to an increase in savings and an additional reduction in consumer activity. In the case of Khabarovsk Territory it is shown that the most affected industries of the economy were retail trade and services. Both industries experienced a negative shock in April, but while the former began recovery as early as May, the latter returned to the growth trajectory only in June. Residents changed their income usage patterns due to the restrictions on the consumer market, as well as to increased uncertainty about their future income. The share of net savings and cash balances increased with a corresponding decrease in the share of spending on goods and services. A negative supply shock contributed to a sharp rise in unemployment up to 24.5 thousand unemployed in the third quarter of 2020. Starting from the fourth quarter unemployment began to decline rapidly, but it had not reached pre-pandemic level of less than 7 thousand unemployed by the second quarter of 2021. It is shown that the permanent population outmigration, which increased in 2020, is a specific feature of the regional labor market. It has slowed down the return of the regional aggregate supply to its pre-pandemic positions after the restrictions were cancelled

Influence of Flow Geometry on Sandface Temperatures During Single-Phase Oil Production: Dimensionless Analysis

SPE Journal ◽  
2016 ◽  
Vol 21 (03) ◽  
pp. 0928-0937 ◽  
Author(s):  
J. F. App
Keyword(s):  
Steady State ◽  
Flow Regime ◽  
Transient Analysis ◽  
Numerical Solutions ◽  
Temperature Behavior ◽  
Transient Temperature ◽  
Linear Flow ◽  
Dimensionless Analysis ◽  
Flow Geometry ◽  
The Impact

Summary This paper evaluates the impact of flow geometry on sandface temperature behavior under conditions of high drawdown in which Joule-Thomson thermal effects are significant. The temperature behavior of both radial- and linear-flow regimes is evaluated under steady-state and transient conditions. Through a dimensionless analysis of the thermal-energy equation, a systematic evaluation of the contributing terms is presented. The steady-state analysis is based on analytic solutions that demonstrate identical temperature behavior at asymptotic limits but are offset by a geometric factor at intermediary Péclet numbers. The transient analysis is based on a combination of analytical and numerical solutions. The transient analysis demonstrates that temperature changes occur earlier in time for the radial geometry compared with the linear geometry. The impetus behind this study is to address the impact of transient-temperature development in hydraulically fractured vs. nonhydraulically fractured vertical completions. The flow regime in nonhydraulically fractured vertical completions is radial whereas in hydraulically fractured vertical completions a linear-flow regime can dominate a significant portion of the flow history. All analyses assume that skin, wellbore-storage, and thermal-storage effects are negligible.

What Affects the Relationship Between Oil Prices and the U.S. Stock Market? A Mixed-Data Sampling Copula Approach*

2020 ◽  
Author(s):  
Yuting Gong ◽  
Ruijun Bu ◽  
Qiang Chen
Keyword(s):  
Aggregate Demand ◽  
Low Frequency ◽  
Oil Prices ◽  
Mixed Data ◽  
Copula Model ◽  
Data Sampling ◽  
Explanatory Variables ◽  
The Impact ◽  
Mixed Frequency Data ◽  
The Relationship

Abstract The relationship between oil prices and stocks is an important issue for portfolio selection and risk management. This article proposes a mixed frequency data sampling copula model with explanatory variables that incorporates low-frequency explanatory variables into a high-frequency dynamic copula model. It enables us to investigate the impacts of economic factors on the relationship between oil and stocks. It is found that the dependence of oil and stock markets is influenced by aggregate demand and stock-specific negative news. The impact of aggregate demand lasts for two years, while the impact of stock-specific news lasts for one quarter.

scholarly journals Accommodation Versus Control Suggested Model to Macro-Economics

ECONOMICS ◽  
2019 ◽  
Vol 7 (1) ◽  
pp. 95-110
Author(s):  
Yassin Eltahir
Keyword(s):  
Aggregate Demand ◽  
General Rule ◽  
Sustainable Growth ◽  
Knowledge Generation ◽  
Analytical Geometry ◽  
Suggested Approach ◽  
Aggregate Supply ◽  
Long Run ◽  
Equilibrium Level ◽  
The Relationship

Abstract The study raised the question of knowledge generation, in attempt to answer this question an economic model was introduced, namely, aggregate demand and aggregate supply. The final target equations can be solved by general rule (deterministic) of solving quadratic equations. The study use analytical geometry and matrix algebra tools to solve the model beside testing their stability characteristics. If we reach unique value to the price equilibrium level then income equilibrium level the maximum potency of the economy can determined. Accordingly the rest of model values would be solved spontaneously. The essential derived result is the relationship between the dependent variable and independent variable can be redefined into accommodated and accommodator one. The long run growth rate of price and income which equal to the equilibrium combat with exogenous theory of growth which seeking stable and sustainable growth. Other results center around how to view the debate of different economic schools from the shape of aggregate demand and aggregate supply, moreover the theoretical and practical test of model give great push to the suggested approach in answering the questions raised concerning the knowledge generation. If the model succeed in exceeding the theoretical and practical tests our understanding to the phenomena functioning will be broaden and enhanced, hence the model capability can be enlarged to interpret phenomena in fields other than economic, typically the suggested approach “top to bottom” may contribute positively to the process of knowledge generation in addition to the modification of value system extraction. Finally the study suggested a protocol scenario in how to apply the derived model by introducing different steps to the application.

scholarly journals Economic and Social Impacts of COVID 19 on National Economies from the Point of View of Economic Theory

2021 ◽  
Vol 92 ◽  
pp. 01036
Author(s):  
Miloš Nový ◽  
Čestmír Jarý
Keyword(s):  
Supply And Demand ◽  
Aggregate Demand ◽  
Value Added ◽  
Social Impacts ◽  
Demand Side ◽  
Aggregate Supply ◽  
National Economies ◽  
The Impact ◽  
Economic And Social Impacts

Research background: The world economy is currently affected by the devastating effects of the global COVID 19 pandemic, reaching the Great Depression of the 1930s. The economic policies of the affected countries are currently focused on short-term measures on the aggregate demand side. To this end, the growth of the public finance deficit is being prepared in the area of fiscal policy, which will ultimately deepen the indebtedness of national economies. If this economic policy is to be sustainable in the long term, measures on the aggregate demand side must be accompanied by measures on the aggregate supply side. Purpose of the article: The purpose of this article is to determine how the current globalization processes affecting the supply and demand sides of selected national economies will be affected in the short and long term as a result of the global COVID 19 pandemic. Methods: A description of the AS - AD model will be performed, covering both short and long periods, and then a description of the impact of globalization processes on aggregate supply and aggregate demand. This will be followed by an analysis of the expected economic and social impacts of COVID 19 on individual globalization processes affecting the supply and demand sides of selected national economies and economic units. Findings & Value added: The article will help to find a systemic approach to the recovery of national economies affected by the effects of the global pandemic COVID 19 through the prism of the AS - AD model.

On inequality, growth and trust: some evidence from the lab

2021 ◽  
pp. 1-16
Author(s):  
Marcello D'Amato ◽  
Niall O'Higgins ◽  
Marco Stimolo
Keyword(s):  
Economic Growth ◽  
Steady State ◽  
Experimental Design ◽  
Observational Studies ◽  
Initial Endowment ◽  
Order Of Magnitude ◽  
Aggregate Effects ◽  
The Impact ◽  
The Relationship

Abstract In a novel experimental design, we investigate the impact of exogenous variation in economic growth and inequality on trusting behaviour. In addition to a control with uniform endowment, three treatments were implemented where the initial endowment is exogenously changed to produce inequality and three growth scenarios where average endowments increase (boom), decrease (recession) or remain unaltered (steady state). We find that aggregate trust and trustworthiness both decrease due to the induced heterogeneity in endowments. Also, trust (but not trustworthiness) decreases (increases) due to recessions (booms). The impact of inequality on trust is greatest in a recession and absent in a boom. These aggregate effects are driven mainly by the reactions of those who, after treatment, end up at the bottom of the endowment distribution. These findings are close in sign and in the order of magnitude to those reported in observational studies on the relationship between growth, inequality and trust.

scholarly journals Relaying the Foundations of Depression Economics for the Technology Age: Reintroduction of the Austrian School of Thought

2017 ◽  
Vol 10 (10) ◽  
pp. 10
Author(s):  
Abhith Pallegar
Keyword(s):  
Structural Changes ◽  
Aggregate Demand ◽  
Austrian School ◽  
Fiscal Policies ◽  
Technology Age ◽  
Current Scenario ◽  
The Impact ◽  
Fiscal And Monetary Policy ◽  
Future Business ◽  
Large Sections

Structural changes in the modern economy have diminished the impact of traditional monetary and fiscal policies. For the past 90 years, the field of depression economics has been dominated by the Keynesian school of thought, which advocated the judicious use of monetary and fiscal policies by governments to artificially create aggregate demand to bring the economy roaring back from a recession. Today, economies are more diversified entities and large sections of these economies cannot be stimulated by monetary and fiscal policies. This paper discusses future of fiscal and monetary policy in an age of rapid technological change. The current scenario calls for the reintroduction of the Austrian School to the mainstream thought process for effectively managing future business cycles.

scholarly journals Revival of Legacy of Tooke and Gibson: Further Evidence and Implications for Monetary Policy

2017 ◽  
Vol 6 (3) ◽  
pp. 127-142
Author(s):  
Keyword(s):  
Interest Rate ◽  
Aggregate Demand ◽  
Correlation Coefficients ◽  
Large Data ◽  
Careful Analysis ◽  
Data Set ◽  
Long Run ◽  
Variable Bias ◽  
The Impact ◽  
The Relationship

AbstractTraditional economics assumes that interest rate effects inflation by changing the aggregate demand (Barth and Ramay, 2002). On the other hand, many economists in recent years have explored the cost side effects of monetary transmission and found very strong evidences in favour of cost channel. One of such studies is that by Rehman (2015) which explores the relationship between interest rate and inflation for a large data set comprising various measures of interest rate and inflation from countries around the globe. Rehman (2015) computes the correlation between two variables and he finds that the correlation between two variables is either positive or insignificant. Rehman argues that the finding is quite robust and does not change with a change in measure of interest rate and/or inflation. If the correlation between interest rate and inflation is positive then using interest rate to control inflation would be counterproductive. Thus it will endorse the warning of Wright Patman, a US congressman and Chairman of Joint Economic Committee who argues that “senseless of trying to fight inflation by raising interest rate, throwing the gasoline on fire to put out the flames would be as logical”. Findings of Rehman (2015) are based on correlation coefficients. The correlation without having control variables could only provide a clue and could be subject to serious missing variable bias. However, Rehman (2015) argues that thousands of similar clues from the entire globe collectively become very strong evidence. However, given the importance of the topic, it is necessary to do a more careful analysis and summarize the relationship between two variables which is not subject to missing variable bias. Therefore, this paper applies more sophisticated econometric techniques including Granger Causality and Static Long Run Solution to find the impact of interest rate and inflation.

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