The Description of the Real Sector of the Russian Economy within the Framework of General Equilibrium Model

Macroeconomic models are widely used by central banks, Governments, international financial institutions in research and applications. These models can be used for a wide range of purposes, including forecasting, scenario analysis, and optimal policy determination. Of particular interest are, inter alia, general equilibrium models. The purpose of this study is to construct a block of general equilibrium model capable of reproducing the dynamics of statistics of the production sector of the Russian economy. Optimization tasks for macroagents "Producer" and "Trader" are set and solved in the work. The solutions are then estimated on Russian data. The built model appeared to be able to reproduce with some accuracy a large set of Russian macroeconomic indicators, such as GDP, volume of fixed assets, etc. As far as the author knows, the procedure of multi-step forecasting adopted in this paper was applied to the production sector for the first time. The use of this approach together with the Trader's new specification constitutes the scientific contribution of this work.