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Venue: Penrhyn Road campus, Penrhyn Road, Kingston upon Thames, Surrey KT1 2EE
The aim of the stock-flow consistent (SFC) framework, stemming from the seminal work of Wynne Godley, is to provide a comprehensive representation of both the real and financial sides of the economy, as well as the important interactions between them, through the adoption of rigorous accounting rules. SFC models are hence well suited to studying a wide variety of topics and have proved particularly useful for instance in understanding the causes and consequences of the 2007 financial crisis and its aftermath. SFC modelling presents a viable and well-developed alternative to mainstream macro-modelling which has proved to be superior to mainstream techniques in many respects.
An important step in further developing this approach is to move towards building a greater number of empirically calibrated models in order to evaluate their performance and achieve greater policy relevance. For this reason, the summer school will not only provide an introduction to theoretical issues surrounding SFC models, but will also put a major emphasis on teaching participants how such models can be ‘brought to the data' in practice.
SFC models are typically aggregative models which do not have explicit microfoundations. This may be appropriate for some purposes, but for others it can be helpful to introduce a more explicit treatment of microeconomic behaviour. One way to do so is to introduce agent heterogeneity in one or more sectors of the model, and to describe the behaviour of these agents using the agent-based modelling approach. This approach, focussing on the heterogeneity of economic behaviours, adaptivity and network interactions allows the modelling of phenomena and emergent properties which would not be present in a purely aggregative model. Participants at the summer school will therefore also be taught how agent-based microfoundations can be added to a stock-flow consistent model both through lectures and computer labs.
The morning lectures from Tuesday 2nd August to Friday 5th August, as well as the keynotes on the first and last days of the summer school, are open to the public - please click the 'book now' link above. The computer labs are not open to the public.
The organisers gratefully acknowledge the financial support received from Kingston University, the Institute for New Economic Thinking's Young Scholars Initiative, and Université Paris 13 - Sorbonne Paris Cité.
Booking is essential to attend this event.
For further information about this event:
Contact: Antoine Godin
Directions to Penrhyn Road campus, Penrhyn Road, Kingston upon Thames, Surrey KT1 2EE: