Abstract
Yes it is. We rigorously demonstrate the equivalence of any stock flow consistent (SFC) model to a directed acyclic graph (DAG) using condensation graphs. The equivalence between stock flow models and DAGs is useful both for visualising large-scale macroeconomic models of this type and for inferring causality within these models. We developed a new package to build and simulate any SFC model and generate the corresponding DAGs, and we provide an example of this package using a well known model from the literature.
| Original language | English |
|---|---|
| Pages (from-to) | 307-316 |
| Number of pages | 10 |
| Journal | Computational Economics |
| Volume | 48 |
| Issue number | 2 |
| DOIs | |
| Publication status | Published - 1 Aug 2016 |
Keywords
- Directed graphs
- Macroeconomic modeling
- Stock flow consistent models
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