A Note on the revision of Asian link model
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This note is an report on the extended model of "Asian Link Model" which has been developed since 2005-2006. At present, the report is mainly focused on the Chinese economy, and the results are still tentative. The extension has been done in two directions, one is to do farther investigation of bi-lateral trade models which include Japan, the United States, China and Korea, and the other is to add an energy model to enable us to simulate the future slowdown in the Asian economy under the energy constraints. The model contains forward looking variables in several important equations which help us to evaluate correctly the role of future expectations. Adding to this, a new method to denote "the substitutability" between the trading partners or the energy sources is applied to the model, which uses the translog-function implicitly to minimize the cost functions.
- Journal of the faculty of economics Kyoto Gakuen University
Journal of the faculty of economics Kyoto Gakuen University 17(1), 51-70, 2007-10