| Popis: |
This paper describes the structure of INTERMOD, a linked international model constructed at the Department of Finance using annual data. Our model follows closely the structure of a policy simulation model developed at the IMF (MULTIMOD), which employs a highly aggregated and common structure for each of the industrial countries. The most important difference is that INTERMOD has separate blocks for each of the G7 countries whereas MULTIMOD aggregates the four smaller countries (France, the UK, Italy and Canada) into a single region. Our discussion of the structure of INTERMOD focuses on the relationship between consumption and wealth, the role of fiscal policy in influencing aggregate demand, the specification of international linkages and the modelling of expectations. This is followed by a comparison of simulation results for INTERMOD, MULTIMOD and other linked international models. Operation of the model in a PC environment is then described. The paper concludes with a discussion of possible policy applications and avenues for further development. A detailed listing of simulation results and the model structure is provided in an appendix to the paper. |
