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Welcome

The WIPOSIM project aims to provide interactive tools and simulations for macroeconomic education and the economic policy debate. The project is structured in three thematic areas.

  • Ecology and macroeconomics
  • Public debt and fiscal policy
  • Financialization and income distribution

See below for the project outputs in each area.


Ecology and macroeconomics

Mini course | Carbon budgets and economic growth

This mini course introduces some basics about the relationship between economic growth and CO2 emissions and the implications for global and country-level carbon budgets.

Interactive tools
  • Decoupling or degrowth? In this app, you can create scenarios for future CO2 emissions pathways depending on economic growth and the speed of decoupling of economic activity from CO2 emissions.
  • Production and CO2 emissions: With this app you can explore how CO2 emissions and production (GDP) have developed over time for various countries.

Blog posts


Public debt and fiscal policy

Mini course | Public debt (COMING SOON)

In this basic course, we introduce the concepts of fiscal policy and public debt and use interactive examples to illustrate some challenges of fiscal consolidation.

Interactive tools
  • Long-run debt-to-GDP ratio (COMING SOON): This app illustrates that the long run value of the debt-to-GDP ratio, is determined by the ratio of the total deficit in percent of GDP and the growth rate of nominal GDP.

Mini course | Fiscal policy and public debt (PREVIEW)

In this text we introduce the government budget identity and derive the factors determining the evolution of the debt-to-GDP ratio. We then discuss the question of debt sustainability and illustrate the role of the primary balance. To conclude, we discuss the main European fiscal rule from a critical perspective. With a series of simple applications, we simulate the concepts explained in the text.

Interactive tools

Mini course | Fiscal policy and the debt-to-GDP ratio. A seemingly counterintuitive effect? (PREVIEW)

Using some simple “Keynesian arithmetic”, we discuss the conditions under which fiscal policy might have a counter intuitive effect on the debt ratio.

Interactive tools

With simplified assumption about deficit spending:

With deficit spending determined endogenously by tax revenues:

Additional interactive tools

  • Fiscal policy in a simple stock-flow consistent (SFC) model of the closed economy: in the following application the effect of fiscal policy on the debt-to-GDP ratio can be tested in a simple SFC model of the closed economy. The model consists of three sectors. The households sector, the firms sector and the government sector. What is the effect of a permanent increase in the level of government spending? What happens to the debt ratio when government spending grows at a constant rate?
  • Fiscal policy dashboard: The following dashboard allows to perform short- and long-term projections of the debt ratio for eurozone countries starting from recent values. Data are obtained from the AMECO database.

Financialisation and income distribution

Mini course | Gender wage gap

In this text we introduce the effects of a gender wage gap in a simple post-Keynesian / Kaleckian macroeconomic model of the closed economy. What is the effect of closing the wage gap on the equilibrium value of aggregate income? What are the conditions in the model so that closing the gender wage gap might have an expansionary effect on aggregate income?

Interactive tools

Additional interactive tools

Research articles


Background

This project was created to extend the thematic range and economic policy scope of our previous project, in which we developed a free interactive online-textbook on an introduction to macroeconomics with a particular focus on the policy implications of the three-equation model of the “New consensus” in macroeconomics and a post-Keynesian alternative.


Project partners

The WIPOSIM project is a cooperation project of Franz Prante , Achim Truger and Till van Treeck at the Institute for Socio-Economics, University of Duisburg-Essen and Alessandro Bramucci and Eckhard Hein at the Institute for International Political Economy Berlin, Berlin School of Economics and Law.

The WIPOSIM project was funded by the Hans-Böckler Foundation.



Funding