7032018-03 , Institute of Developing Economies (IDE-JETRO)
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 U.S. dollars and current prices to those in local currencies and constant prices. In addition, the structure of a global model with economies of scale and imperfect competition is illustrated. A numerical example is also demonstrated in order to show the applicability of the model.
JEL:C54 - Quantitative Policy Modeling JEL:D57 - Input–Output Tables and Analysis JEL:D58 - Computable and Other Applied General Equilibrium Models JEL:F47 - Forecasting and Simulation: Models and Applications Global multi-country model Exchange rate Local currency Money Foreign exchange
Institute of Developing Economies (IDE-JETRO)
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