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The EAGLE. A model for policy analysis of macroeconomic interdependence in the euro area

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  • Gomes, S.
  • Jacquinot, P.
  • Pisani, M.

Abstract

We develop a 4-region macroeconomic model of the euro area and the world economy. The model (EAGLE, Euro Area and Global Economy model) is microfounded and designed for conducting quantitative policy analysis of macroeconomic interdependence across regions in the euro area and between the euro area and the world economy. Specifically, we simulate a permanent reduction in labor tax rates in the euro area. The effects on real activity are expansionary in both the short run and long run. Implementing reforms simultaneously across regions would produce extra benefits and make the macroeconomic performance in the euro area more even.

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Bibliographic Info

Article provided by Elsevier in its journal Economic Modelling.

Volume (Year): 29 (2012)
Issue (Month): 5 ()
Pages: 1686-1714

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Handle: RePEc:eee:ecmode:v:29:y:2012:i:5:p:1686-1714

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Web page: http://www.elsevier.com/locate/inca/30411

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Keywords: Open-economy macroeconomics; DSGE models; Econometric models; Policy analysis;

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References

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  1. Sandra Gomes & P. Jacquinot & M. Mohr & M. Pisani, 2011. "Structural reforms and macroeconomic performance in the euro area countries: a model-based assessment," Working Papers, Banco de Portugal, Economics and Research Department w201113, Banco de Portugal, Economics and Research Department.
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  8. Sandra Gomes & P. Jacquinot & M. Pisani, 2010. "The EAGLE. A model for policy analysis of macroeconomic interdependence in the euro area," Working Papers, Banco de Portugal, Economics and Research Department w201006, Banco de Portugal, Economics and Research Department.
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