Fennell, PG,O'Sullivan, DJP,Godin, A,Kinsella, S

2016

August

Computational Economics

Is It Possible to Visualise Any Stock Flow Consistent Model as a Directed Acyclic Graph?

Published

()

Stock flow consistent models Directed graphs Macroeconomic modeling MONEY

48

307

316

Yes it is. We rigorously demonstrate the equivalence of any stock flow consistent (SFC) model to a directed acyclic graph (DAG) using condensation graphs. The equivalence between stock flow models and DAGs is useful both for visualising large-scale macroeconomic models of this type and for inferring causality within these models. We developed a new package to build and simulate any SFC model and generate the corresponding DAGs, and we provide an example of this package using a well known model from the literature.

10.1007/s10614-015-9521-8