Integrated Macro-Micro-Modelling Under Rational Expectations

1 Introduction: Scope and Purpose.- 1.1 Introduction.- 1.2 State of the Art.- 1.3 Contributions of this Book.- 1.4 Organisation of the Remainder of this Book.- 2 An Overview of Orani-Int.- 2.1 Introduction.- 2.2 Nomenclature for Intertemporal Modelling.- 2.3 The Structure of ORANI-INT.- 2.4 Chapter Summary.- 3 The Theoretical Structure of Orani-Int.- 3.1 Introduction.- 3.2 Industry Behaviour.- 3.3 Final Demands.- 3.4 Zero Pure Profits Conditions.- 3.5 Market Clearing Conditions.- 3.6 Miscellaneous Equations.- 3.7 Chapter Summary.- Appendix A3.1 The Log-Linear form of the Orani-Int Equation System.- Appendix A3.3 Alternative Investment Specifications.- Appendix A3.4 The Implications of the Irreversibility Constraint on Investment.- Appendix A3.5 A Note on Divisia Indexes.- 4 Solution Method.- 4.1 Introduction.- 4.2 Alternative Solution Methods.- 4.3 The ORANI-INT Solution Algorithm.- 4.4 Modelling Sign Constraints.- 4.5 Chapter Summary.- 5 Generating the Control Path Solution.- 5.1 Introduction.- 5.2 Constructing an Intertemporal Base Solution.- 5.3 The Control Scenarios.- 5.4 Chapter Summary.- Appendix A5.1 The ORani- 13 Database.- 6 Orani-Int's Simulation Properties with and without Forward-Looking Behaviour.- 6.1 Introduction.- 6.2 An Overview of the Illustrative Experiments.- 6.3 Interpretation of Results.- 6.4 The Benchmark Experiment.- 6.5 The Investment Experiment.- 6.6 The Consumption Experiment.- 6.7 The Full Intertemporal Experiment.- 6.8 The Surprise Experiment.- 6.9 Chapter Summary.- 7 Should Tariff Reductions Be Announced?.- 7.1 Introduction.- 7.2 Simulating the Tariff Reduction Strategies.- 7.3. Simulation Results.- 7.4. Summary and Conclusions.- 8 Summary and Conclusions.- 8.1 Introduction.- 8.2 Model Development.- 8.3 Applications.- 8.4 An Agenda forFuture Research.- 8.5 Final Comments.- References.- Author Index.- List of Tables.- List of Figures.