ESAN - project for the refinement and disaggregation of a macroeconomic model of the Peruvian economy

ESAN will: (1) disaggregate the model"s supply characteristics into 7 sectors - livestock and agriculture (to be further disaggregated to the level of individual crops), fishing, mining and petroleum, construction, manufacturing, government, and other - corresponding to the official sectoral breakdown published by the Central Reserve Bank; (2) add or change equations so as to better capture changes in income distribution and economic activity in the informal sector; (3) disaggregate the external sector to the level of the 7 sectors just mentioned, with separate equations for traditional and nontraditional exports, and separate estimates for imports competitive with domestic production and those complementary to it; (4) in the monetary sector, replace the global estimation of the supply and demand for money by separate estimates of demand for a supply of currency, M1 as traditionally defined, and liquidity in local and in foreign currency; (5) allow for temporary disequilibrium in each of the monetary sector"s four components; and (6) modify the fiscal sector to provide greater detail on revenues and expenditures.