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FIDELIO 3 manual: Equations and data sources

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FIDELIO (Fully Interregional Dynamic Econometric Long-term Input-Output) is a multi-sectoral model developed by the unit B.5 of the Directorate General Joint Research Centre (JRC) — the circular economy and industrial leadership unit. Compared to neoclassical CGE models — which assume that the perfect flexibility of prices and quantities ensures the full use of the factors of production at all times — FIDELIO integrates some new-Keynesian features: consumption adjusts slowly to its optimal level according to an error correction model and wages do not clear the labour market. The assumptions that prices do not clear the markets and market "imperfections" exist generate the dynamics of the model that is solved sequentially (recursive dynamic). In addition, FIDELIO is an econometric model since the calibration of most of the behavioural parameters of the model (dynamic adjustment lags of prices and quantities, and elasticities) is based on econometric estimations.This technical report illustrates the third version of the FIDELIO model, FIDELIO 3. The changes introduced in the subsequent versions of the model have two main objectives. The first one is to increase the coverage of the model. The second one is to improve the efficiency and the capacity of the model to evaluate sustainable production and consumption policies. The aim of this report is twofold. First, it contains all the equations of the current version of the model; second, it illustrates the characteristics of the data used by FIDELIO 3.

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  • Paola Rocchi & Simone Salotti & Frederic Reynes & Jinxue Hu & Tatyana Bulavskaya & Jose Manuel Rueda-Cantuche & Juan Manuel Valderas Jaramillo & Agustin Velazquez Afonso & Antonio De Amores & Teodora , 2019. "FIDELIO 3 manual: Equations and data sources," JRC Research Reports JRC115308, Joint Research Centre.
    • Handle: RePEc:ipt:iptwpa:jrc115308
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    File URL: https://publications.jrc.ec.europa.eu/repository/handle/JRC115308
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    1. Kurt Kratena & Mark Sommer & Gerhard Streicher & Simone Salotti & Juan Manuel Valderas Jaramillo, 2017. "FIDELIO 2: Overview and Theoretical Foundations of the Second Version of the Fully Interregional Dynamic Econometric Long-term Input-Output Model for the EU 27," WIFO Studies, WIFO, number 61880, April.
    2. Azusa OKAGAWA & Kanemi BAN, 2008. "Estimation of substitution elasticities for CGE models," Discussion Papers in Economics and Business 08-16, Osaka University, Graduate School of Economics.
    3. Wilhelmsson, Mats, 2008. "House price depreciation rates and level of maintenance," Journal of Housing Economics, Elsevier, vol. 17(1), pages 88-101, March.
    4. Koetse, Mark J. & de Groot, Henri L.F. & Florax, Raymond J.G.M., 2008. "Capital-energy substitution and shifts in factor demand: A meta-analysis," Energy Economics, Elsevier, vol. 30(5), pages 2236-2251, September.
    5. Kurt Kratena & Gerhard Streicher & Umed Temurshoev & Antonio F. Amores & Iñaki Arto & Ignazio Mongelli & Frederik Neuwahl & José-Manuel Rueda-Cantuche & Valeria Andreoni, 2013. "FIDELIO 1: Fully Interregional Dynamic Econometric Long-term Input-Output Model for the EU 27," WIFO Studies, WIFO, number 46816, April.
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    1. Paola Rocchi & José Manuel Rueda-Cantuche & Alicia Boyano & Alejandro Villanueva, 2019. "Macroeconomic Effects of EU Energy Efficiency Regulations on Household Dishwashers, Washing Machines and Washer Dryers," Energies, MDPI, vol. 12(22), pages 1-21, November.

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    More about this item

    Keywords

    Dynamic econometric model; Input-output; FIDELIO 3;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • E17 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Forecasting and Simulation: Models and Applications
    • F10 - International Economics - - Trade - - - General

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