Abstract:
MARMOTTE is an annual multinational model of 17 OECD countries focussing on the medium term. Each country is modelled by a system of about 50 equations. This rational expectations model has strong microeconomic foundations as most of the behavioural equations result from inter-temporal optimisation. Due to these characteristics, the simulation results are easy to interpret. This model is currently used under the framework of a European Network to investigate the international transmission of shocks as well as to analyse the consequences of economic policy in the euro area.