1. This model reads that savings is determined by present income, past income, investment, interest rate (i) (inversely), factor payments (Co), inventory level (Inv), demand for money (L) (inversely); investment (I) is determined by capital (K), income (Y), government revenue, savings, interest rate (inversely), marginal efficiency of capital (mec) [mec in turn is caused by risk (inversely), effective demand (ED), tastes, capital assets (KA), quality of the capital assets (Kaq), capital, production (O), expected demand and the supply price of the capital assets (inversely)]; consumption is determine by savings (inversely), factor payments (Co), capital, income, normal income (Yn), current assets (CA), discounted future income (FYpv), and present value of future wealth (FWpv); income is determined by output, demand and price; demand is determined by price (inversely), supply, consumption; supply is determine by output, inventory (inversely), imports (Im), and exports (inversely); price is determined by supply (inversely), demand, costs, demand for money, and supply of money (inversely); supply of money is determined by availability of loanable funds (LF), dehoarding (DH), hoarding (H) (inversely), M1, M2, M3 and the velocity of money (v); demand for money is determined by investment, interest rate (inversely), consumption, liquidity preference (LP), hoardings (H) (inversely), economies of scale (ES), demand for liquid cash (Lgs), demand for money to settle claims (Lcl), demand for money for transactions purposes (Lt), demand for money for precautionary purposes (Lp), demand for money for speculation purposes (Ls); transactions demand for money is determined by income, cost of transactions, level of business activity (i.e. investments), savings (inversely), and interest rate (inversely); precautionary demand for money is determine by assets (A), income, investment and interest rate (inversely);incorporates the causes of the following: savings (Sa), investment (I), employment (E), output (O), supply (S), interest rate (i), supply of money (M), demand for money (L), consumption (C), government revenue (GR)
2. Half-Arrow Modeling Technique