How to design an appropriate model for a given task. Choosing the number and type of agents; modeling the behavior of households and firms.
- A list of commonly used functional forms. Also contains a link to a PDF quick reference guide.
- Demand systems for goods and services; income elasticities; functional forms.
- Permanent income model; extended linear expenditure system; Keynesian consumption function.
- Factor demand systems; constant returns to scale and zero profits; increasing returns to scale; joint production.
- Sector-specific capital; costs of adjustment; time to build.
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Peter J Wilcoxen, The Maxwell School, Syracuse University