Customizable Spreadsheet Solution: Macroeconomic Model of an Economy
Customizable Feature Comparison
These are not rigid spreadsheet templates. You can customize them in dozens of ways to get the features you want while reducing unneeded complexity.
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Customizable Feature Comparison
| Feature |
Standard & Light
Versions |
Advanced & Extra-Large
Versions |
Comments |
| Demand and Income |
| Short-term Expected Demand(t) ‡ |
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Modeled in terms of aggregate demand and smoothing time for short-term demand |
| Long-term Expected Demand(t) ‡ |
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Modeled in terms of aggregate demand and smoothing time for long-term demand |
| Aggregate Demand(t) |
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Modeled in terms of final sales, desired inventory investment, and a random demand shock |
| Final Sales(t) |
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Modeled as consumption, investment and government spending |
| Consumption(t) |
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Modeled in terms of permanent income and propensity to consume. |
| Current Disposable Income(t) |
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Modeled as output plus government spending less tax receipts. |
| Permanent Income(t) ‡ |
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Modeled as a perception of likely long-term income, using current disposable income and a smoothing time. |
| Capital Investment |
| Capital(t) ‡ |
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The stock of capital in the economy |
| Capital Investment(t) |
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New investment in capital stock |
| Capital Depreciation(t) |
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Determined by average life of capital |
| Desired Capital(t) |
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Modeled in terms of expected long-term demand, capital life, interest rates, and a capital productivity factor. |
| Interest Rate(t) |
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Full model distinguishes short and long-term rates and computes short-term rates from money supply parameters. |
| Government Sector |
| Tax(t) |
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Determined by output and tax rate, where model sets tax rate to cover equilibrium government spending and transfers. |
| Government Spending(t) |
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Modeled as a settable percentage of equilibrium output |
| Government Transfers(t) |
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Modeled as a settable percentage of equilibrium output |
| Labor Model |
| Employment(t) ‡ |
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Modeled with real wage levels, smoothing time for employment. |
| Desired Employment(t) |
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Set by short-term demand, real wages, and capital productivity factor |
| Unemployment Rate(t) |
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Relationship between employment and desired level of employment |
| Lagged Unemployment Rate(t)* |
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Determined by time profile of unemployment. Does not affect other variables in the model. |
| Output and Inventory |
| Output(t) |
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Modeled with shocks, equilibrium levels, and smoothing time for output. |
| Potential Output(t) |
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Modeled based on labor and capital inputs and scale effects. |
| Average Output(t) ‡ |
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Long-term average of output, computed with a smoothing time. |
| Inventory(t) ‡ |
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Modeled with inventory coverage ratio and inventory adjustment time. |
| Money Supply and Price Level |
| Prices(t) ‡ |
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General price level changes with time as a function of unemployment rate (but not money supply). |
| Money Supply(t)* |
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Money supply interacts with velocity of money, two money supply elasticities, and the Philips curve. |
| Stochastic Shocks |
| Shock to aggregate demand |
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Random shocks to aggregate demand, controllable by the user |
| Shock to output |
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Random shocks to aggregate output, controllable by the user |
“‡” denotes a main time evolution variable of the model. The others are auxiliary variables.
“(t)” denotes a time dependent variable.
Version Size Limits
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