Page 65 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.70, # 2, 2013, pp. 32-66

 Specifying and quantifying the needed magnitude of national productive capacity and

related accumulation of the right type of investment.
 Ability to measure the movements and growth of various national expenditures and

final demand components of the economy.
 Determining the overall equilibrium conditions at the national economy level and

identifying the likely deviations.
 Deriving and estimating variety of demand elasticities, output and supply coefficients,

impacts on inflation, labour productivity, investment and incremental capital-output ratios, and

other economic related and useful ratios and coefficients.
 Measuring the impact on the growth, employment and economic prosperity of various

scenario implications of different structures of government expenditures by type, agency and sector.

 Assess the impact of the shift in the composition of government expenditure, between
recurrent and development fund allocations.

 Determine the national resources envelop and related scenario alternatives.
 Forecast various revenue components, trends, and delineate the strategic revenue

development by each components and their respective impacts.
 Determining the total investment requirements to achieve growth and sustainable

development.

 Assessing socio-economic impact of alternative scenarios of tax system, tax policy and
type of taxation, including the impact of different rates of GST (VAT).

 Measure the trend in subsidies, and how to rationalize and curtail, through time, and
the impact of such policies.

 Determining the public fiscal trends and balances, with sustainability and public debts
aspects and likely development therein.

 Quantifying the economic impact of alternative sets of wages, salaries level and

productivity growth patterns.
 Measure the impact of changing private consumption pattern and/or other final

expenditure and demand categories on various macroeconomic variables.

 The model capability to project the import requirements and by commodity, hence can
be used to simulate foreign exchange requirements, in the economy, through time.

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