On the design of empirical stock-flow-consistent models

Arbeitspapier

While the literature on theoretical macroeconomic models adopting the stock-flow-consistent (SFC) approach is flourishing, few contributions cover the methodology for building a SFC empirical model for a whole country. Most contributions simply try to feed national accounting data into a theoretical model inspired by Wynne Godley and Marc Lavoie (2007), albeit with different degrees of complexity. In this paper we argue instead that the structure of an empirical SFC model should start from a careful analysis of the specificities of a country's sectoral balance sheets and flow of funds data, given the relevant research question to be addressed. We illustrate our arguments with examples for Greece, Italy, and Ecuador. We also provide some suggestions on how to consistently use the financial and nonfinancial accounts of institutional sectors, showing the link between SFC accounting structures and national accounting rules.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 919

Classification and Topics

• Classification: Wirtschaft ; General Aggregative Models: Keynes; Keynesian; Post-Keynesian ; Monetary Systems; Standards; Regimes; Government and the Monetary System; Payment Systems ; Macroeconomic Issues of Monetary Unions
• Subject: Empirical Stock-Flow-Consistent Models ; Ecuador ; Greece ; Italy

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Zezza, Gennaro ; Zezza, Francesco
• Event: Veröffentlichung
• (who): Levy Economics Institute of Bard College
• (where): Annandale-on-Hudson, NY
• (when): 2019

Further information

• Handle: http://hdl.handle.net/10419/209162
• Last update: 10.03.2025, 11:45 AM CET