Nationaløkonomisk tidsskrift,
Nationaløkonomisk Forening

Abstract: The long run properties of the macroeconometric model ADAM and the dynamic CGE-model DREAM are compared and found to be similar with respect to both the aggregate demand and aggregate supply. Taxation has different effects in the two models. In DREAM taxes affect, for example, the incentives to work, whereas no tax effects are present in the wage curve in ADAM. A financed permanent increase in public consumption of privately produced goods has approximately no activity effects in ADAM, whereas there is a negative effect on long run activity in DREAM, due to a negative effect on the incentive to work from the increased tax burden. In both models the long run level of aggregate consumption is reduced more than the increase in public consumption. A reduction in the interest rate leads to a positive supply shock in both models. The consumption is increased on impact due to capital gains. The long run level of consumption is reduced relative to the base case in both models.

Keywords: økonomisk model; ADAM; DREAM; macroøkonomi

JEL-codes: A10

Language: Danish

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