The MODELS research project will improve existing large-scale economic models and will install them at the Commission for in house use for policy analysis and assessment of policies promoting the Lisbon Strategy. The project will improve and deliver the models GEM-E3, WorldScan, MIRAGE and NEMESIS. These are multi-country and multi-sector models of the general equilibrium type (GEM-E3, WorldScan, MIRAGE) and macro-econometric (NEMESIS). GEM-E3 and NEMESIS also include a detailed representation of the energy and environmental systems.
All models incorporate dynamic aspects and have a representation of technological change. In order to improve the models in analysing the economic impact of structural reforms linked to the Lisbon agenda they must be extended and improved in the following directions: evaluation of knowledge objectives through endogenous growth driven by technology; evaluation of employment objectives through enhanced modelling of labour markets and human capital; assessment of the intern al market and trade for services through modelling of imperfect competition under economies of scale; evaluation of environmental sustainability objectives through model integration of energy and environment systems and their links with growth and investment driven by endogenous technology progress.
Specific extensions of the models and databases, to cover the labour market, the R&D sector, the disaggregation of household types (enabling the analysis of distributional effects of policies), product market competition will also be undertaken. Special effort will be devoted to the exchange of scientific information on modelling and Lisbon-related applications between the modelling teams. It is expected that the Commission will be provided with state-o f-the-art large-scale modelling tools and will get new policy insights regarding impact assessment of structural reforms.
Call for proposal
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Funding SchemeSTREP - Specific Targeted Research Project