@article{Breece:267294,
      recid = {267294},
      author = {Breece, James H. and McLaren, Keith R. and Murphy, Chris  W. and Powell, Alan A.},
      title = {Using the Murphy Model to Provide Short-Run Macroeconomics  Closure for Orani},
      address = {1991-07-01},
      number = {2012-2018-515},
      series = {Working Paper No. 6/91},
      pages = {40},
      year = {1991},
      abstract = {This paper gives details of an interface constructed to  allow the coupling of the ORANI applied general equilibrium  model and the Murphy macrodynamic model. It shows how the  previously developed methodology for interfacing a  continuous-time macro model with a comparative static  general equilibrium model (Cooper, McLaren and Powell  (1985)) can be adapted to accommodate a macro model  formulated in discrete time. The Murphy Model (MM) includes  a model of the housing sector. This allows the interfaced  ORANI/MM system to have investment in housing activity  determined by MM, which (unlike ORANI) links housing  investment directly to conditions in financial markets. A  by-product of the interfacing procedure is an empirical  estimate of the ORANI short run. Under a calibrating shock  in which real government spending increases permanently by  10 per cent relative to control, and this fiscal expansion  is financed about equiproportionately from bond issue and  monetary expansion, the estimated ORANI short run turns out  to be eight quarters, confirming earlier work. It was found  possible to solve for 'as-if' shocks in the macroeconomic  environment which, when injected into ORANI in stand-alone  mode, would reproduce the macroeconomic projections of MM  to a good first approximation. Thus it proved possible to  use ORANI to disaggregate to the level of 112 industries  the macroeconomic projections produced by MM.},
      url = {http://ageconsearch.umn.edu/record/267294},
      doi = {https://doi.org/10.22004/ag.econ.267294},
}