A macro model incorporating rational expectations in financial markets (the Murphy Model - MM) is used to endogenize the macroeconomic environment for a comprehensive general equilibrium model (ORANI). The interface exploits the existence of variables which are endogenous to both models,...

This book presents a detailed account of how a state-of-the-art macro model is built, and how it works. Throughout the emphasis is on providing the reader with a hands-on appreciation of the underlying economics, and its practical implementation. The model described, MM, is a leading example of...

This book is unique. It gives a clear and systematic account of the economic basis of every equation in a major 100-equation macro model, plus full documentation of parameters and simulation properties. Results are explained in detail with the help of miniature models that capture the important...