Finance Discipline Group
UTS Business School
University of Technology, Sydney

Working Paper Series

Title:
Towards Applied Disequilibrium Growth Theory: I The Starting Model
Author(s): Carl Chiarella & Peter Flaschel
Date of publication: November 1999
Working paper number: 93
Abstract:
In this paper we build a hierarchically structured continuous-time model of Keynesian monetary growth. The model is sufficiently rich with respect to markets, sectors and agents and consistent with respect to budget constraints to capture sufficient broad details of actual macroeconomies and so serve as a macrotheoretic basis for many large scale models. We describe the model at the level of national accounts and then derive its extensive form dynamics. We also give detailed discussion as to how our model is related to the large scale Murphy model of the Australian economy. Our model provides a basis for understanding the various economic feedback chains contained in such models and their dynamic interaction.
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Known citations:

Chiarella, C. and Flaschel, P., 1999a, "Towards Applied Disequilibrium Growth Theory: II Intensive Form and Steady State Analysis of the Model", Working Paper: 94, Finance Discipline Group, University of Technology, Sydney.

Chiarella, C. and Flaschel, P., 2003, "Towards Applied Disequilibrium Growth Theory: V Housing Investment Cycles, Private Debt Accumulation and Deflation", Working Paper: 97, Finance Discipline Group, University of Technology, Sydney.

Chiarella, C., Flaschel, P., Groh, G., Koper, C. and Semmler, W., 1999a, "Towards Applied Disequilibrium Growth Theory: VI Substitution, Money-Holdings, Wealth-Effects and Further Extensions", Working Paper: 98, Finance Discipline Group, University of Technology, Sydney.

Chiarella, C., Flaschel, P., Groh, G., Koper, C. and Semmler, W., 1999b, "Towards Applied Disequilibrium Growth Theory: VII Intensive Form and Steady State Calculation in the Case of Substitution", Working Paper: 99, Finance Discipline Group, University of Technology, Sydney.

Chiarella, C., Flaschel, P., Groh, G., Koper, C. and Semmler, W., 2000, "AS-AD Disequilibrium Dynamics and Economic Growth", In Engelbert J. Dockner, Richard F. Hart, Mikulas Luptačik and Gerhard Sorger (Eds) Optimization, Dynamics, and Economic Analysis Essays in Honor of Gustav Feichtinger.

Chiarella, C., Flaschel, P. and Semmler, W., 1999, "The Macrodynamics of Debt Deflation", Working Paper: 7, Center for Economic Policy Analysis, New School for Social Research.

Chiarella, C., Flaschel, P. and Zhu, P., 2003, "Towards Applied Disequilibrium Growth Theory: IV Numerical Investigations of the Core 18D Model", Working Paper: 96, Finance Discipline Group, University of Technology, Sydney.