A stock-flow-fund ecological macroeconomic model

Dafermos, Yannis; Nikolaidi, Maria; Galanis, Giorgos

doi:10.1016/j.ecolecon.2016.08.013

Cited by 151 publications

(92 citation statements)

References 33 publications

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“…Finally, an ambitious model in Dafermos, Nikolaidi, and Galanis (2017) provides additional insights. In this model, the monetary and the physical stocks are determined based on SFC accounting principles and the laws of thermodynamics.…”

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confidence: 99%

“…This is important because "green" investment is treated separately from "conventional" investment in the economic part of the model, and therefore investment shifts affect ecological efficiency. Dafermos, Nikolaidi, and Galanis (2017) calibrate the model using global data to produce simulations over a 100-year time horizon under different assumptions of the impact of financial 13 The integration of the SFC methodology into I-O based models is recognized as a potentially fruitful new research area (Kratena and Temursho 2017).…”

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confidence: 99%

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Stock-Flow Consistent Macroeconomic Models: A Survey

Nikiforos

Zezza

2017

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in May 2017The Levy Economics Institute Working Paper Collection presents research in progress by Levy Institute scholars and conference participants. The purpose of the series is to disseminate ideas to and elicit comments from academics and professionals.Levy Economics Institute of Bard College, founded in 1986, is a nonprofit, nonpartisan, independently funded research organization devoted to public service. Through scholarship and economic research it generates viable, effective public policy responses to important economic problems that profoundly affect the quality of life in the United States and abroad. extended to address issues such as financialization and income distribution. We next discuss the implications of the approach for models of open economies and compare the methodologies adopted in developing SFC empirical models for whole countries. We review the contributions where the SFC approach is being adopted as the macroeconomic closure of microeconomic agent-based models, and how the SFC approach is at the core of new research in ecological macroeconomics. Finally, we discuss the appropriateness of the name "stock-flow consistent" for the class of models we survey.

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confidence: 99%

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Stock-Flow Consistent Macroeconomic Models: A Survey

Nikiforos

Zezza

2017

SSRN Journal

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“…The second strand deals with recent debates in ecological economics, which persistently question the market-based solutions to climate change problems (Ashford and Hall 2011), and push for a better integration of planetary boundaries in models (Rockström et al 2009). The third strand deals with recent developments in post-Keynesian economics that allow for better integration of behavioral, financial, and distributional aspects (Rezai and Stagl 2016), with recent attempts at integrating finance and the environment (Monasterolo and Raberto 2017; Dafermos et al 2017), but has so far little to say on supply-side constraints and endogenous technological change (Kronenberg 2010;Sawyer 2013, 2016).…”

Section: Literaturementioning

confidence: 99%

“…More generally, post-Keynesian emphasize mechanisms that give rise to path-dependent growth, which next to endogenous technical change, includes endogenous institutional change and hysteresis effects on the labor markets as well (Setterfield 2011;Stockhammer 2011). Ecological post-Keynesian models are fairly new with only a handful of models emerging in the last few years (Hardt and O'Neill 2017) Within these studies, technological change is either modeled as a constant (Victor 2008;Jackson 2009;Naqvi 2015;Berg et al 2015) or as a decreasing function of time using the Verdoorn's law Sawyer 2013, 2016;Dafermos et al 2017). Figure 1 shows the key features of the model where the flows across the sectors are highlighted as links.…”

Section: Post-keynesian Economics and Ecological Macromentioning

confidence: 99%

“…The emissions sector is kept relatively simple for illustrative purposes without any feed back on the real economy. The model can be extended to include Nordhaus (Nordhaus 1992) type environmental damage function that affect overall output (see for example Dafermos et al 2017 for an application in an SFC framework), or emissions can be endogenized to affect labor or capital productivity with possible extension of including endogenous environmental taxes linked to emissions (Naqvi 2015).…”

Section: Environmentmentioning

confidence: 99%

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Directed Technological Change in a Post-Keynesian Ecological Macromodel

Naqvi

Stockhammer

2018

Ecological Economics

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This paper presents a post-Keynesian ecological macro model that combines three strands of literature: the directed technological change mechanism developed in mainstream endogenous growth theory models, the ecological economic literature which highlights the role of green innovation and material flows, and the post-Keynesian school which provides a framework to deal with the demand side of the economy, financial flows, and inter-and intra-sectoral behavioral interactions. The model is stock-flow consistent and introduces research and development (R&D) as a component of GDP funded by private firm investment and public expenditure. The economy uses three complimentary inputs -Labor, Capital, and (non-renewable) Resources. Input productivities depend on R&D expenditures, which are determined by relative changes in their respective prices. Two policy experiments are tested; a Resource tax increase, and an increase in the share of public R&D on Resources. Model results show that policy instruments that are continually increased over a long-time horizon have better chances of achieving a "green" transition than one-off climate policy shocks to the system, that primarily have a short-run affect.

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Stock‐Flow Consistent Macroeconomic Models: A Survey

Nikiforos

Zezza

2018

Analytical Political Economy

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The stock-flow consistent (SFC) modeling approach, grounded in the pioneering work of Wynne Godley and James Tobin in the 1970s, has been adopted by a growing number of researchers in macroeconomics, especially after the publication of Godley and Lavoie (2007), which provided a general framework for the analysis of whole economic systems, and the recognition that macroeconomic models integrating real markets with flow-of-funds analysis had been particularly successful in predicting the Great Recession of 2007-9. We introduce the general features of the SFC approach for a closed economy, showing how the core model has been extended to address issues such as financialization and income distribution. We next discuss the implications of the approach for models of open economies and compare the methodologies adopted in developing SFC empirical models for whole countries. We review the contributions where the SFC approach is being adopted as the macroeconomic closure of microeconomic agent-based models, and how the SFC approach is at the core of new research in ecological macroeconomics. Finally, we discuss the appropriateness of the name "stock-flow consistent" for the class of models we survey.

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A stock-flow-fund ecological macroeconomic model

Cited by 151 publications

References 33 publications

Stock-Flow Consistent Macroeconomic Models: A Survey

Stock-Flow Consistent Macroeconomic Models: A Survey

Directed Technological Change in a Post-Keynesian Ecological Macromodel

Stock‐Flow Consistent Macroeconomic Models: A Survey

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