QUEST II. A multi country business cycle and growth model. Economic Papers No. 123, October 1997. II/509/97-EN

Roeger, Werner and in't Veld, Jan (1997) QUEST II. A multi country business cycle and growth model. Economic Papers No. 123, October 1997. II/509/97-EN. [EU Commission - Working Document]

Preview

PDF - Published Version Download (263Kb) | Preview

Abstract

From the Introduction. QUEST was designed to analyse the economies in the member states of the European Union and their interactions with the rest of the world, especially with the United States and Japan. The focus of the model is on the transmission of the effects of economic policy both on the domestic and the international economy. The model was primarily constructed to serve as a tool for policy simulation; less emphasis was put on its ability to serve as a forecasting tool. Given the wide coverage of the model it must necessarily be highly aggregated. A high degree of aggregation and foundation of the specification in current macroeconomic theory also helps in interpreting and understanding the results of the simulations. Finally simplicity also facilitates the solution of the model and reduces the time and memory requirements of the computer-simulations. The new model contains structural models for the EU member states, the US and Japan and distinguishes 10 additional countries/regions in trade feedback models in order to model trade interactions with the rest of the world.

Actions (login required)