The paper is organized as follows. Section 2 describes the basic elements
of the model (its detailed formulation appears in Appendix A), and two
alternative closure rules. Section 3 describes the model's empirical
implementation in two steps: first, we construct a consistent set of historical
data (whcse detail is provided in Appendix B). The "positive" version cf the
model is then used to simulatet he macroeconomice fects of two alternativef iscal
policy scenarios. Section 4 presents some concluding remarks.