A Micro-to-Macro Model of the Swedish Economy


This is the set of papers on the Swedish micro-to-macro model which were presented at the IUI-IBM Sweden conference on micro simulation models, September 19-22, 1977. To our knowledge this is the first international seminar ever devoted to micro based models of entire economic systems. Besides the Swedish model, papers were also presented on the Yale model (Orcutt et al.), on the University of Maryland model (Bergmann et al.) and on others. The conference program has been attached at the end.

The plan is to publish the complete proceedings in one volume pending editing and also to allow for separate publications of various items. The papers on the Swedish model have been ready for some time, and since we need the documentation we are now publishing them under separate cover. They will appear as they now stand in the full conference volume.

The Swedish micro-to-macro model is based on a modified Leontief- Keynesian 10 sector macro structure. Four of the sectors have been expanded to accommodate a large number of individual business firms (decision units) connected via explicit labor, product and credit markets at the micro level. The individual firm model contains several novel features. Emphasis is on the importance of the market process, as we see it at the micro level, for macro behavior. This micro-to-macro link includes both how individual decisions interact to affect macro behavior and how the behavior of the total system impacts micro units. In that sense the performance and stability properties of a market based, industrialized economy are the prime concerns of the study. The performance aspect very much centers around the allocation of total resources in the long run and how that process is affected by decision making and market behavior. More specifically, the interaction of inflation, expectations and growth is the topic that carries through the project work and also this set of papers.


Stockholm, April 1978

Gunnar Eliasson
The Industrial Institute for Economic and Social Research (IUI)

Lars Arosenius
IBM Sweden

Interdisciplinary European Studies

The European Union and the Return of the Nation State


This book explores the complex and ever-changing relationship between the European Union and its member states. The recent surge in tension in this relationship has been prompted by the actions of some member state governments as they question fundamental EU values and principles and refuse to implement common decisions seemingly on the basis of narrowly defined national interests.

About the book


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