Demo-economic Modeling: Review and Prospects

Abstract

This paper focuses on progress in achieving greater integration between demographic and economic components in system-wide modeling. It underlines the importance of Czamanski’s Baltimore model as well as other influential research based on the two-sector economic base model, before proceeding to review more complex, spatially-disaggregated economy-wide models. The subsequent work of Ledent, Schinnar and others is presented as the foundation for some important initiatives that centered on the Batey-Madden model and its derivatives. Attention is directed to some recent advances in the Batey-Madden model and subsequent work addressing household heterogeneity in the context of income formation and distribution associated with contributions by Miyazawa. The paper explores some avenues for integration of activity analysis and household disaggregation based on income, age or skill endowments to enhance the understanding of the role that households play in the economy.