Using counterfactuals from macroeconomic models to assess risks to accomplishment of structural innovations

Abstract

Abstract A macroeconomic model often described as an input-output model, is specified mathematically to characterize production and consumption in an economy. Perturbations of attributes this macroeconomic model allow the examination of counterfactuals - hypothetical scenarios that run “counter to the facts” of an existing reality – to assess risks to accomplishments of structural innovations in light of plausible endogenous or exogenous shocks to the economy.

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