This article discusses how I systematically generate the systems of equations that determines financial asset holdings within the Python sfc_models framework for Stock-Flow Consistent (SFC) models. It should be noted that despite the generality of the title, I am only discussing how I attacked the problem (the results of my technique is consistent with the literature that I have studied). The existing literature relies on the derivation of system equations by hand, and so the modelling techniques used by others are less constrained than the algorithmic equation generation I use.
(This article is technical, and aimed at those with an interest in SFC models, or more generally, an interest in how to set up a mathematical macro model. It will presumably make its way into an upcoming book on SFC modelling in Python.)
The Determination Financial Asset Holdings In SFC Models