Interim Report for:Development and Applications of a Novel Global Economic Model
Interim Report
Edited by Takashi Yano
A Local-Currency-Based Multi-Sectoral Model for Global Economic Analysis (660KB) / Takashi Yano and Tsubasa Shibata
Economic agents make their decisions by focusing on the economic performance of their economies in their currencies rather than in a foreign currency. This shows that a multi-country economic model in local currencies is suitable to analyze global economic issues. However, international input-output tables are denominated in a specific currency such as the US dollar. Employing the OECD Intercountry Input-Output Tables, this paper presents a method to convert the international input-output tables in US dollars and current prices to those in local currencies and constant prices. In addition, this paper illustrates the structure of a global model with economies of scale and imperfect competition.
This paper is very preliminary and incomplete. Please do not cite without the permission of the authors.