Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/324479 
Year of Publication: 
2025
Series/Report no.: 
FMM Working Paper No. 114
Publisher: 
Hans-Böckler-Stiftung, Macroeconomic Policy Institute (IMK), Forum for Macroeconomics and Macroeconomic Policies (FMM), Düsseldorf
Abstract: 
This paper aims to develop an ecological macroeconomic model for the Danish economy that can link the economic and financial system with some key aspects of the climate. To do so, we combine Stock-flow-Consistent approach (SFC) with Input-Output tables (IO) to build a hybrid model, which we call Ecological Stock-Flow-Consistent Input-Output model (E-SFC-IO). Most parameters of the model are estimated using time series data from 1995 to 2019, after which, we carry out simulations. We find that the model (with some minor adjustments) can replicate the dynamics of our key variables pertaining to the economy, financial system, and climate. To further validate the model, we analyse the response of the economy to various shocks, finding that it can capture the stylised facts. The model offers a foundation for providing a reasonable assessment of the climate policies to the relevant stakeholders.
Subjects: 
Empirical Stock Flow consistent models
Input-Output modelling
Ecological macroeconomics
Denmark
JEL: 
E12
E17
F41
L16
Creative Commons License: 
cc-by Logo
Document Type: 
Working Paper

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