Page 39 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.70, # 2, 2013, pp. 32-66

Chart -2-

The Model’s Causal-Chain and Determination of
Equilibrium Schematic Linkages

Technological Changes
Development and Institutional Household
Expenditure Consumption
Improvement
Government
Transfers and
Subsidies
TFP
Government
Consumptio Employment
n

Income
Inequality -
Aggregate Poverty-
Public Sector Productive Demand Exports
Productive
Investment Capital Stock
Garment
Exports
Gross
Private Sector Productive Domestic
Investment Capacity Product -
GDP-

Total
Revenues
Aggregate
Supply
Investment

Potential
Population of Labour- Imports
Working Age
Force

Inflation

Labour-Force
Participation Financial and Other
Status -Quality Facilities
Development-

3.1 The Macro-Fiscal Forecasting Model’s Variables

The followings are the macro-fiscal forecasting model’s variables, listed by each segment
of the main four segments of the model, with some necessary interactions;

38