{
  "title": "The Integration of Macro and Microeconomic Relations in Dynamic Policy Models: The Case of Saving and Investment Behavior",
  "publication": "IMF Working Papers, April 1, 1990",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/30/the-integration-of-macro-and-microeconomic-relations-in-dynamic-policy-models-the-case-of-3051",
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  "summary": "This paper examines how two types of fiscal policy models, namely, dynamic macroeconomic models and applied general equilibrium models, have integrated macro- and microeconomic relationships within a framework of intertemporal equilibrium.",
  "sections": [
    {
      "heading": "Overview",
      "content": "- Paper examines how two types of fiscal policy models—dynamic macroeconomic models and applied general equilibrium models—have integrated macro- and microeconomic relationships within a framework of intertemporal equilibrium.\n- Emphasizes potential advantages of integrating macro- and microeconomic relations.\n- Discusses limitations of intertemporal equilibrium models, particularly weaknesses of saving and investment theories incorporated in the models.\n- Concludes that, despite recent important advances, policymakers need to exercise caution when they interpret results derived from these models."
    },
    {
      "heading": "Key findings and substantive points",
      "content": "- Integration of macro- and microeconomic relations can offer potential advantages for fiscal policy modeling.\n- Intertemporal equilibrium models used in the literature exhibit important limitations.\n- Weaknesses identified are concentrated in the saving and investment theories incorporated in intertemporal equilibrium models.\n- Despite recent important advances in modeling, interpretation of model results requires caution by policymakers."
    },
    {
      "heading": "Subject areas and keywords (as provided)",
      "content": "- Subjects: Capital income tax, Econometric analysis, Fiscal policy, General equilibrium models, Income, National accounts, Private savings, Taxes\n- Keywords: capital, Capital income tax, economy, General equilibrium models, incentive effect, Income, investment, investment behavior, investment function, investment theory, market, Private savings, representative investment, welfare effect, WP\n\n---\n\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/30/the-integration-of-macro-and-microeconomic-relations-in-dynamic-policy-models-the-case-of-3051"
    }
  ],
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    "[Markdown version](/en/publications/wp/issues/2016/12/30/the-integration-of-macro-and-microeconomic-relations-in-dynamic-policy-models-the-case-of-3051/index.md)",
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    "Authors: Ary Lars Bovenberg",
    "Published: April 1, 1990",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451978759.001",
    "Paper examines how two types of fiscal policy models—dynamic macroeconomic models and applied general equilibrium models—have integrated macro- and microeconomic relationships within a framework of intertemporal equilibrium.",
    "Emphasizes potential advantages of integrating macro- and microeconomic relations.",
    "Discusses limitations of intertemporal equilibrium models, particularly weaknesses of saving and investment theories incorporated in the models.",
    "Concludes that, despite recent important advances, policymakers need to exercise caution when they interpret results derived from these models.",
    "Integration of macro- and microeconomic relations can offer potential advantages for fiscal policy modeling.",
    "Intertemporal equilibrium models used in the literature exhibit important limitations.",
    "Weaknesses identified are concentrated in the saving and investment theories incorporated in intertemporal equilibrium models.",
    "Despite recent important advances in modeling, interpretation of model results requires caution by policymakers.",
    "Subjects: Capital income tax, Econometric analysis, Fiscal policy, General equilibrium models, Income, National accounts, Private savings, Taxes",
    "Keywords: capital, Capital income tax, economy, General equilibrium models, incentive effect, Income, investment, investment behavior, investment function, investment theory, market, Private savings, representative investment, welfare effect, WP"
  ],
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