Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/333441 
Year of Publication: 
2025
Citation: 
[Journal:] European Journal of Economics and Economic Policies: Intervention (EJEEP) [ISSN:] 2052-7772 [Volume:] 22 [Issue:] 3 [Year:] 2025 [Pages:] 301-316
Publisher: 
Edward Elgar Publishing, Cheltenham
Abstract: 
The paper explores the evolution of empirical stock-flow consistent (SFC) models, emphasising their structure, scope and number of financial and physical assets. Three types of models can be identified. The New Cambridge type is characterised by the aggregation of households, firms and banks into one aggregate private sector. The Godley-Lavoie type, termed after the impact of their collective work, treats the main institutional sectors separately. The third type, despite being largely heterogeneous, is marked by higher complexity. The paper argues that the structure of the models should vary according to the research question at hand, as higher complexity is ensued by augmented discrepancies between in-sample projections and actual data, especially in the financial domain. Despite this trade-off, several aspects of the models need to be improved, even at the expense of having more complicated structures. The paper provides some indications towards the direction that these improvements ought to take.
Subjects: 
empirical stock-flow consistent
stock-flow consistent modelling
empirical macrostructural models
JEL: 
E10
E12
E17
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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