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Bridging the Gap between Economic Modelling and Simulation: A Simple Dynamic Aggregate Demand-Aggregate Supply Model with Matlab
Author
Source
Journal of Applied Mathematics
Issue
Vol. 2018, Issue 2018 (31 Dec. 2018), pp.1-13, 13 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2018-01-16
Country of Publication
Egypt
No. of Pages
13
Main Subjects
Abstract EN
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.
American Psychological Association (APA)
Gaspar, José M.. 2018. Bridging the Gap between Economic Modelling and Simulation: A Simple Dynamic Aggregate Demand-Aggregate Supply Model with Matlab. Journal of Applied Mathematics،Vol. 2018, no. 2018, pp.1-13.
https://search.emarefa.net/detail/BIM-1175993
Modern Language Association (MLA)
Gaspar, José M.. Bridging the Gap between Economic Modelling and Simulation: A Simple Dynamic Aggregate Demand-Aggregate Supply Model with Matlab. Journal of Applied Mathematics No. 2018 (2018), pp.1-13.
https://search.emarefa.net/detail/BIM-1175993
American Medical Association (AMA)
Gaspar, José M.. Bridging the Gap between Economic Modelling and Simulation: A Simple Dynamic Aggregate Demand-Aggregate Supply Model with Matlab. Journal of Applied Mathematics. 2018. Vol. 2018, no. 2018, pp.1-13.
https://search.emarefa.net/detail/BIM-1175993
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1175993