Supply oriented macroeconomics. The MACE model of Canada
This paper describes MACE, a two sector annual nacroeconometric model of the Canadian economy. The sectoral breakdown highlights the role of energy in a small open economy. In addition, the model emphasizes the supply side, which includes both the evolution of normal output and the determination of the level of current output as the consequence of an explicit operating rate decision by firms. The bulk of the paper outlines the approach used to model supply side considerations, since this is where most of the model's innovative features lie.
|Keywords||Energy, Macroeconometric model, Supply side|
Helliwell, J.F. (John F), MacGregor, M.E. (Mary E), McRae, R.N. (Robert N), Plourde, A, & Chung, A. (Alan). (1987). Supply oriented macroeconomics. The MACE model of Canada. Economic Modelling, 4(3), 318–340. doi:10.1016/0264-9993(87)90007-1