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.
History
Publication
Computational Economcis;48 (2), pp. 307-316
Publisher
Springer
Note
peer-reviewed
Other Funding information
Institute for New Economic Thinking
Rights
The original publication is available at www.springerlink.com