The multi-sectoral growth model MSG-4 : formal structure and empirical characteristics

Abstract

In the first part of this paper a brief retrospective survey of the development of the MSG model is given, from it was first presented in Johansen (1960) until the present version MSG-4. Some principal choices to be made regarding the structure of an applied general equilibrium model are also discussed. The paper then presents main features of the formal structure of the MSG-4 model. Finally, some empirical characteristics of the present MSG version are demonstrated by presenting estimates of long-term total elasticities calculated by the MSG model.