Page 36 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.72, # 2, 2015, pp. 32-42

Accounting Identities

(21)
(22)

Table 1. Endogenous variables and Exogenous variables

Endogenous variables Exogenous variables
E Export World price of World price of
exported good exported good
M Import World price of World price of
imported good imported good
Supply of Supply of domestic good Tariff rate Tariff rate
domestic good
D
D Demand for domestic good Sales tax Sales tax
s
Q Supply for composite good Direct tax rate Direct tax rate
D
Q Demand for composite good tr Government transfers
Y Total income ft Foreign transfers to
government
Domestic price Domestic price of exported re Foreign remittances to
of exported good private sector
good
Domestic price Domestic price of imported Average Average savings rate
of imported good savings rate
good
Domestic price Domestic price of domestic Aggregate Aggregate output
of domestic good output
good
P t Sales price of composite Real Real government
good government demand
demand
Price of Price of aggregate output Balance of Balance of trade
aggregate trade
output
Price of Price of composite good µ Import substitution
composite good elasticity
R Exchange rate Ω Export transformation
elasticity
T Tax

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