ECONORIA Model Lab pathway
ECONORIA MODEL LAB
See the economy
as a system.
Move from accounts to mechanisms, from interdependence to equilibrium, and from policy shocks to regional and national consequences. Build models that make economic structure visible—and decisions testable.
IO · PRODUCTIONSAM · INCOMECGE · EQUILIBRIUMMRIO · SPACE
WHY MODEL?
An economy is not a list.
It is a network.
A policy intervention enters through one market, travels through production chains, changes incomes and prices, crosses regional boundaries, and returns through feedback effects. Economic modelling makes that journey explicit.
Represent
Translate institutions, agents and transactions into a coherent economic structure.
Simulate
Introduce a transparent shock and trace direct, indirect and induced effects.
Decide
Compare scenarios, distributional consequences, trade-offs and uncertainty.
THE MODEL LAB CURRICULUM
From accounting identity
to policy laboratory.
Fifteen progressive laboratories connect economic data, mathematical structure, calibration, behavioural theory, spatial interaction and policy interpretation.
The Circular Flow as a System
Identify agents, markets, stocks, flows and the accounting logic that holds the economy together.
OPEN-SYSTEM THINKING →
Input–Output Foundations
Read the transactions table and distinguish intermediate demand, final demand, value added and output.
FROM TABLE TO STRUCTURE →
Technical Coefficients
Construct the A matrix and interpret each coefficient as a production requirement.
A = Zx⁻¹ →
The Leontief System
Derive total output requirements and understand direct and indirect production effects.
x = (I − A)⁻¹f →
Multipliers and Linkages
Estimate output, income and employment multipliers; locate backward and forward linkages.
TRACE PROPAGATION →
Regions in an Interdependent Economy
Extend IO across space and reveal how regional demand activates production elsewhere.
ADD THE SPATIAL DIMENSION →
Trade, Spillovers and Leakage
Separate local retention from import leakage and measure interregional spillover effects.
MAP ECONOMIC TRANSMISSION →
Social Accounting Matrices
Connect production to factors, institutions, households, government and the rest of the world.
COMPLETE THE CIRCULAR FLOW →
Distribution and SAM Multipliers
Trace how sectoral shocks become labour income, household income, consumption and inequality effects.
WHO GAINS? WHO ADJUSTS? →
From Accounting to Behaviour
Introduce optimisation, prices, substitution, market clearing and system-wide feedback.
ENDOGENISE THE ECONOMY →
National CGE Architecture
Build production, household, government, trade and macro-closure blocks into one equilibrium model.
ASSEMBLE THE MODEL →
Regional CGE
Represent regional labour, capital, trade, mobility and place-specific adjustment.
MODEL SPACE EXPLICITLY →
Multi-Regional CGE
Connect multiple regional economies through trade, migration, capital and price transmission.
SIMULATE INTERDEPENDENCE →
Calibration, Validation and Sensitivity
Reproduce the benchmark, document parameters and test whether conclusions survive uncertainty.
MAKE THE MODEL CREDIBLE →
The Integrated Policy Simulation
Design a shock, select closure, simulate scenarios, interpret mechanisms and produce a defensible policy verdict.
THINK · SIMULATE · DECIDE →
LIVE SYSTEM DEMONSTRATION
Release a shock.
Follow the transmission.
This conceptual simulator shows why model choice matters. Adjust the intervention and observe how sectoral stimulus travels through production, incomes, demand and spatial spillovers.
MODEL INTERPRETATIONThe intervention creates direct activity, activates upstream suppliers and generates interregional spillovers. A structural model is needed because the initial expenditure is not the final economic effect.
WHAT THE LEARNER WILL MASTER
Not only how to calculate.
How to reason with models.
Read an economy
Recognise the institutional, sectoral and spatial architecture behind economic data.
Build the system
Move confidently from identities and matrices to behavioural equations and equilibrium.
Trace mechanisms
Explain how a shock moves through markets, regions, institutions and feedback loops.
Judge responsibly
Compare scenarios without hiding assumptions, distributional effects or uncertainty.
THE FIRST MODEL AWAITS
Begin with the economy
as a connected whole.
Laboratory 1 establishes the language of agents, markets, transactions, stocks, flows and accounting consistency—the foundation beneath every IO, SAM and CGE model.
