Model scope and methods - IMACLIM-India
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|Indian Institute of Management Lucknow (IIML), India, www.iiml.ac.in., Indian Institute of Management Ahmedabad (IIMA), India, www.iima.ac.in.
|General equilibrium (closed economy)
IMACLIM-IND operates in a comparative-static framework as a system of simultaneous non-linear equations:
With a set of variables, a set of parameters and a set of functions, for some of them linear, for some of them non-linear. The values of some variables at calibration year constitute a specific subset of parameters, which we systematically note as the variables with a index. The functions embody constraints of either an accounting nature or a behavioral nature. The accounting constraints impose themselves on the modeler for the sake of consistency. The behavioral constraints, quite distinctively, convey the modeler’s views on economic causalities and correlations.