IDEAS home Printed from https://ideas.repec.org/p/eaf/wpaper/42003en.html
   My bibliography  Save this paper

Simulations with the AEAF Мodel

Author

Listed:
  • Anthonie Knoester
  • Nico van der Windt

Abstract

The main purpose of this paper is to be of assistance in understanding the working of the AEAF model. To this end we will explain in section 2 how in the simulations levels and percentages changes are treated as well as the important difference between stocks and flows. Section 3 deals with the consequences of linking the block of the real sector with that of the monetary sector. This is demonstrated with a sensitivity analysis in which we compare a policy simulation made with the complete AEAF model with the one that is obtained from the real block only. Section 4 discusses the major mechanisms that are at work in the model. Their importance for the outcomes of the AEAF model will be demonstrated with two sensitivity analysis viz. on the one hand the exclusion of the Philips curve mechanism and on the other hand the exclusion of the shifting forward of taxation from the wage equation. The paper ends with some concluding remarks in section 6.

Suggested Citation

  • Anthonie Knoester & Nico van der Windt, 2003. "Simulations with the AEAF Мodel," Working paper series 42003en, Agency for Economic Analysis and Forecasting.
    • Handle: RePEc:eaf:wpaper:42003en
    as

    Download full text from publisher

    File URL: http://www.aeaf.minfin.bg/bg/izdaniq/Simulations%20with%20the%20AEAF%20Model_WPS_0303.pdf
    File Function: Main text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Knoester, Anthonie & van der Windt, Nico, 1987. "Real Wages and Taxation in Ten OECD Countries," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 49(1), pages 151-169, February.
    2. Anthonie Knoester & Nico van der Windt, 2003. "The Need for Economic Models in Economic Policy Making," Working paper series 32003en, Agency for Economic Analysis and Forecasting.
    3. Stanimir Barzashki, 1992. "Employment and Unemployment in the Process of Stabilization," Working paper series 61992en, Agency for Economic Analysis and Forecasting.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Vakulenko, E. & Gurvich, E., 2016. "Real Wage Flexibility in Russia: Comparative Analysis," Journal of the New Economic Association, New Economic Association, vol. 31(3), pages 67-92.
    2. Lourens Broersma & Frank A. G. den Butter & Udo Kock, 2006. "A cointegration model for search equilibrium wage formation," Journal of Applied Economics, Universidad del CEMA, vol. 9, pages 235-254, November.
    3. Stephen Nickell, 2003. "Employment and Taxes," CESifo Working Paper Series 1109, CESifo.
    4. Patrizio Lecca & Peter G. McGregor & J. Kim Swales & Ya Ping Yin, 2014. "Balanced Budget Multipliers For Small Open Regions Within A Federal System: Evidence From The Scottish Variable Rate Of Income Tax," Journal of Regional Science, Wiley Blackwell, vol. 54(3), pages 402-421, June.
    5. Nickell, Stephen & Bell, Brian, 1996. "Would cutting payroll taxes on the unskilled have a significant effect on unemployment?," LSE Research Online Documents on Economics 20687, London School of Economics and Political Science, LSE Library.
    6. Graafland, J.J., 1991. "From Phillips curve to wage curve," MPRA Paper 21077, University Library of Munich, Germany.
    7. Alesina, Alberto & Perotti, Roberto, 1995. "Taxation and redistribution in an open economy," European Economic Review, Elsevier, vol. 39(5), pages 961-979, May.
    8. Alvin Ó Murchú, 2002. "Tax Policy and OECD Unemployment," Working Papers 200231, School of Economics, University College Dublin.
    9. de Kam, C. A. & de Haan, J. & Giles, C. & Manresa, A. & Berenguer, E. & Calonge, S., 1996. "Who pays the taxes?," MPRA Paper 7146, University Library of Munich, Germany.
      • C. A. de Kam & J. de Haan & C. Giles & A. Manresa & E. Berenguer & S. Calonge & J. Merz, 1996. "Who pays the taxes?," FFB-Discussionpaper 18, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.
    10. Anthonie Knoester & Nico van der Windt, 2003. "The Need for Economic Models in Economic Policy Making," Working paper series 32003en, Agency for Economic Analysis and Forecasting.
    11. John Hutton & Anna Ruocco, 1999. "Tax Reform and Employment in Europe," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 6(3), pages 263-287, August.
    12. Stephen Nickell, 1999. "Finnish unemployment : a view from outside," Finnish Economic Papers, Finnish Economic Association, vol. 12(2), pages 62-81, Autumn.
    13. Dalin, Torbjörn & Stage, Jesper, 2011. "The effects of capital income taxation on wage formation," Economics Letters, Elsevier, vol. 113(2), pages 186-188.
    14. Broersma, L. & Butter, F.A.G. den, 1993. "The influence of labour market dynamics on wage formation," Serie Research Memoranda 0057, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    15. PLASMANS, Joseph & MEERSMAN, Hilde & VAN POECK, André & MERLEVEDE, Bruno, 1999. "Generosity of the unemployment benefit systern and wage flexibility in EMU: Time- varying evidence in five countries," Working Papers 1999043, University of Antwerp, Faculty of Business and Economics.
    16. repec:zbw:bofrdp:1995_012 is not listed on IDEAS
    17. Marc van der Steeg & Roel van Elk & Dinand Webbink, 2012. "Does intensive coaching reduce school dropout?," CPB Discussion Paper 224.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    18. repec:eee:labchp:v:3:y:1999:i:pc:p:3029-3084 is not listed on IDEAS
    19. Patrizio Lecca & Peter McGregor & Kim Swales & Ya Ping Yin, 2010. "Inverted Haavelmo Effects in a General Equilibrium Analysis of the Impact of Implementing the Scottish Variable Rate of Income Tax," Working Papers 1013, University of Strathclyde Business School, Department of Economics.
    20. Tyrväinen, Timo, 1995. "Wage determination in the long run, real wage resistance and unemployment : Multivariate analysis of cointegrating relations in 10 OECD economies," Research Discussion Papers 12/1995, Bank of Finland.
    21. Koen Burggraeve & Philip Du Caju, 2003. "Reductions in employers' social security contributions in a wage norm and automatic indexing régime," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 46(4), pages 31-64.
    22. Van Poeck Andrè & Veiner Maret & Plasmans Joseph, 2007. "Wage flexibility in the new European Union members: How different form the “old” members?," wp.comunite 0006, Department of Communication, University of Teramo.

    More about this item

    Keywords

    AEAF model; simulations; Bulgaria;
    All these keywords.

    JEL classification:

    • E17 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Forecasting and Simulation: Models and Applications
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eaf:wpaper:42003en. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kiril Vassilev (email available below). General contact details of provider: https://edirc.repec.org/data/aeagvbg.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.