Author: ZEW

What is macroeconomic modelling and why do we do it?

Hector Pollitt, Head of Modelling of Cambridge Econometrtics, explores: what is economic modelling anyway and why do we do it? In the world of policy analysis models aim to represent the societies and economies that we live in, all held within a computer system. We do modelling to help understand what will happen to the economy under different policies, and what this means for things that matter, like jobs and inequality. Different models have different representations of the economy and all macroeconomic models have their strengths and weaknesses – for sure some are better than others. The importance of...

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EU Battery Alliance launches Airbus-style consortium to make Europe a force in batteries

Major automotive, chemicals, raw materials, engineering and energy companies are joining forces to overcome the EU’s competitive disadvantage in next-generation battery technologies and build a European battery manufacturing base. Backed by policy support and an increase in funding from the EU, the Battery Alliance aims to increase Europe’s competitiveness vis-à-vis Asia and the US. The immediate objective is to create a competitive manufacturing value chain in Europe with sustainable battery cells at its core. To prevent a technological dependence on our competitors and capitalise on the job, growth and investment potential of batteries, Europe has to move fast in the global race. According to some forecasts, Europe could capture a battery market of up to €250 billion a year from 2025 onwards. Covering the EU demand alone requires at least 10 to 20 ‘gigafactories’ (large-scale battery cell production facilities). Across EU MS the ability to transform research into profitable innovation varies considerably, this is a phenomenon named the “European Paradox”. The structural factors that are key in explaining this paradox according to Andrés Rodríguez-Pose (2014) are i) the quality of human capital, b) structure of economic fabrics, c) migration of skilled personnel and d) deficient institutional settings. Work package 3.4 of MONROE focusses on improving the representation of human capital and its link with R&I in the CGE models. The assessment of R&I policies will be more realistic because the CGE...

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Special Session on Modelling of R&D and Innovation Policy as a part of the SMARTER Conference 2018

The MONROE project is working on organizing a special session on modelling of R&D and innovation policy as a part of 2018 SMARTER Conference on Smart Specialisation and Territorial Development that will take place in Seville (26th-28th of September). This conference offers a comprehensive picture of the smart specialisation policy experience, including an evaluation of its early results, and highlights recent developments both conceptually and empirically. Particular attention will be given to implementation challenges and ways to address them, as well as to methodologies for impact assessment. In addition, the conference will explore how smart specialisation engages with global...

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The MONROE-FRAME workshop took place on the 7th of June at the DG RTD premises in Brussels. The workshop was attended by participants from DG RTD, DG ECFN, DG REGIO and JRC. Tom Holden has given a presentation of MONROE DSGE model and its first estimation on data for US and Germany as well as the first policy simulations. Other presentations were given by the members of FRAME project consortium who have presented the structure of their base DSGE model and results of econometric estimations of the knowledge production function using country-level...

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About Monroe

"MONROE is developing a modelling toolkit and an interactive online tool that allows European and national governments, academia, regional and local bodies to quantitatively evaluate the impacts of their specific research programmes and innovation policies."

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