QUEST is a structural macro-model in the New-Keynesian tradition with rigorous microeconomic foundations derived from utility and profit optimisation and including frictions in goods, labour and financial markets.
There are different versions of the QUEST model, estimated and calibrated, each used for specific purposes.
- Smaller model variants have been estimated using Bayesian methods, jointly with colleagues at the Commission's Joint Research Centre (JRC). These dynamic stochastic general equilibrium (DSGE) models are used for shock analyses and shock decompositions, for example to assess the main drivers of growth and imbalances.
- Larger multi-country calibrated model versions are used to address issues for which a deeper level of disaggregation is required, both at the regional and sector level. Many of the main applications deal with fiscal and monetary policy interactions and either use a one-sector model or models that explicitly distinguish tradable and non-tradable sectors and trade in intermediate goods.
- Other model variants also include housing and collateral constraints, and a banking sector.
- All calibrated model versions are employed using different country disaggregations, focussing on the euro area or EU as a whole, and other global regions, or on individual member states.
- For the analysis of structural reforms an extended version of the QUEST model is used with endogenous R&D (QUEST-RD). This model captures both investment in tangibles and intangibles, and disaggregates employment into three skill categories. In this model variant technological change is semi-endogenous. These models are calibrated for each of the MS and are our primary tool for the analysis of structural reforms.
- For the analysis of climate change mitigation policies an energy variant of the model is used, E-QUEST. This EU-wide model disaggregates energy producing and energy using sectors with different emission intensities and is applied to analyse the costs of decarbonisation policies.
QUEST bibliography
- Philipp Pfeiffer, Janos Varga and Jan in ‘t Veld (2023), “Unleashing Potential: Reform Benchmarking for EU Member States”, European Economy Discussion Papers (192).
- Gergő Motyovszki (2023), “The Fiscal Effects of Terms-of-Trade-Driven Inflation”, European Economy Discussion Papers (190).
- Philipp Pfeiffer, Janos Varga and Jan in ‘t Veld (2023), “Quantifying spillovers of coordinated investment stimulus in the EU”, Macroeconomic Dynamics.
- Varga, J. , Roeger W. and in ’t Veld, J. (2022), “E-QUEST - A Multi-Region Sectoral Dynamic General Equilibrium Model with Energy: Model Description and Applications to Reach the EU Climate Targets”. Economic Modelling, 114. Also published as: ECFIN Discussion Paper 146
- Philipp Pfeiffer, Janos Varga, Jan in ’t Veld (2021). Quantifying Spillovers of Next Generation EU Investment, ECFIN Discussion Paper 144
- Mario Bellia & Ludovic Cales & Lorenzo Frattarolo & Andreea Maerean & Daniel Monteiro & Marco Petracco Giudici & Lukas Vogel, 2020. "The sovereign-bank nexus in the euro area: financial and real channel," Quarterly Report on the Euro Area (QREA), Directorate General Economic and Financial Affairs (DG ECFIN), European Commission, vol. 19(1), pages 45-65, June. Also: European Economy - Discussion Papers 2015 - 122, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
- Philipp Pfeiffer, Werner Roeger, Jan in ’t Veld (2020) The COVID19-Pandemic in the EU: Macroeconomic Transmission and Economic Policy Response as Teaser, Discussion Paper 127
- Matthias Burgert, Werner Roeger, Janos Varga, Jan in 't Veld, Lukas Vogel (2020) A Global Economy Version of QUEST: Simulation Properties, Discussion Paper 126
- Roeger, W, Varga, J., In 't Veld, J., Vogel, L., 2021. "The Distributional Impact of Labour Market Reforms: A Model-Based Assessment", European Economic Review, 131, January 2021. Also publisged as CESifo Working Paper No. 7918.
- In 't Veld, J. (2019) Quantifying the Economic Effects of the Single Market in a Structural Macromodel, Discussion Paper 94
- Vogel, Lukas, 2017. "Structural reforms at the zero bound," European Journal of Political Economy, Elsevier, vol. 48(C), pages 74-90.
- Romanos Priftis & Lukas Vogel, 2017. "The macroeconomic effects of the ECB’s evolving QE programme: a model-based analysis," Open Economies Review, Springer, vol. 28(5), pages 823-845, November.
- Lukas Vogel, 2017. "Stabilization and Rebalancing with Fiscal or Monetary Devaluation: a Model-Based Comparison," CESifo Economic Studies, CESifo, vol. 63(2), pages 235-253.
- Roeger Werner & Vogel Lukas, 2017. "Horizontal Transfers and Consumption Smoothing in a Monetary Union," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 237(3), pages 275-294, June.
- K. Mc Morrow & F. Orlandi & R. Raciborski & W. Roeger & V. Vandermeulen & J. in’tVeld & L. Vogel, 2016. "Medium term economic dynamics of the Euro Area," International Economics and Economic Policy, Springer, vol. 13(1), pages 27-43, January.
- Romanos Priftis & Lukas Vogel, 2016. "The Portfolio Balance Mechanism and QE in the Euro Area," Manchester School, University of Manchester, vol. 84(S1), pages 84-105, September.
- In 't Veld, J., (2016)Public Investment Stimulus in Surplus Countries and their Euro Area Spillovers , Economic Brief 16
- Vogel L., (2015):Stabilisation and rebalancing with fiscal or monetary devaluation: a model-based comparison , ECFIN Discussion Paper 22
- Fritz Breuss, Werner Roeger, Jan in ’t Veld (2015) "The stabilising properties of a European Banking Union in case of financial shocks in the Euro Area" European Economy. Economic Paper no. 550
- Anna Thum-Thysen, Erik Canton (2015) "Estimation of service sector mark-ups determined by structural reform indicators" European Economy. Economic Paper no. 547
- Matthias Burgert, Werner Roeger (2014) "Fiscal Devaluation: Efficiency and Equity" European Economy. Economic Paper no. 542
- Vogel, Lukas, 2014. "Nontradable sector reform and external rebalancing in monetary union: A model-based analysis," Economic Modelling, Elsevier, vol. 41(C), pages 421-434.
- Janos Varga, Jan in 't Veld (2014) "The potential growth impact of structural reforms in the EU. A benchmarking exercise" European Economy. Economic Paper no. 541
- Lukas Vogel (2014) "Structural reforms at the zero bound" European Economy. Economic Paper no. 537
- D. Lorenzani, J. Varga. (2014) "The Economic Impact of Digital Structural Reforms" European Economy. Economic Paper no. 529
- In ‘t Veld, J., R. Kollmann, B. Pataracchia, M. Ratto and W. Roeger. (2014) "International Capital Flows and the Boom-Bust Cycle in Spain" European Economy. Economic Paper no. 519
- Kollmann R., Ratto M., Roeger W., In ‘t Veld J., and Vogel L. (2014) “What drives the German current account? And how does it affect other EU member states?" European Economy. Economic Paper no. 516
- Varga J., Roeger W. and In ’t Veld J. (2013) “Growth Effects of Structural Reforms in Southern Europe: The case of Greece, Italy, Spain and Portugal” European Economy Economic Paper no. 511
- Vogel L. (2013), "The Impact of Structural Policies on External Accounts in Infinite-horizon and Finite-horizon Models”, Review of International Economics, Wiley Blackwell, vol. 21(1), pages 103-117, 02 (Also available as: European Economy Economic Paper no 474).
- In ‘t Veld , J. (2013), “Fiscal consolidations and spillovers in the Euro area periphery and core”, European Economic Papers no. 506.
- Pataracchia B., R. Raciborski, M. Ratto and W. Roeger (2013), “Endogenous housing risk in an estimated DSGE model of the Euro Area”, European Economic Papers no. 505.
- Roeger W., in 't Veld J. (2013), “Expected sovereign defaults and fiscal consolidations", European Economy Economic Papers no. 479.
- In ’t Veld, J., M. Larch and M.Vandeweyer (2013). "Automatic Fiscal Stabilisers: what they are and what they do", Open Economies Review, 24(1), p. 147-163.(Also available as: European Economy Economic Paper no. 452.)
- Cuerpo, C., Drumond, I., Lendvai, J., Pontuch, P. and R. Raciborski (2013), “Indebtedness, Deleveraging Dynamics and Macroeconomic Adjustment”, European Economy Economic Paper no. 477.
- Kollmann, R., M. Ratto, W. Roeger and J. in 't Veld (2013), “Fiscal policy, banks and the financial crisis", Journal of Economics Dynamics and Control, 37(2),p.387-403.(Also available as: European Economy Economic Papers no. 464)
- In ’t Veld, J. , A. Pagano, M. Ratto, Roeger, W. and I. Szekely (2012), “Sovereign debt sustainability scenarios based on an estimated model for Spain", European Economy Economic Papers no. 466.
- J. in ‘t Veld, Pagano A., R. Raciborski, M. Ratto and W. Roeger (2012), “Imbalances and rebalancing scenarios in an estimated structural model for Spain”, European Economy Economic Paper no. 458
- Vogel, L. (2012): "Structural reforms, fiscal consolidation and external rebalancing in monetary union: A model-based analysis," Economic Modelling 29, 1286–1298.
- In ’t Veld, J. and W. Roeger (2012), “Evaluating the Macroeconomic Effects of Government Support Measures to Financial Institutions in the EU", European Economy Economic Paper no. 453.
- Raciborski R., J. Lendvai and L. Vogel (2012) "Securities Transaction Taxes: Macroeconomic Implications in a General-Equilibrium Model", European Economy Economic Paper, no. 450.
- Kollmann, R., W. Roeger and J. in 't Veld (2012), “Fiscal policy in a financial crisis: standard policy vs. bank rescue measures", American Economic Review, Papers & Proceedings 2012, 102(3): 77–81. Also published as: CEPR Discussion Paper no. 8829.
- Vogel L., (2012), "Tax avoidance and fiscal limits: Laffer curves in an economy with informal sector", European Economy Economic Paper no. 448.
- Coenen, G., C. Erceg, C. Freedman, D. Furceri, M. Kumhof, R. Lalonde, D. Laxton, J. Linde, A. Mourougane, D. Muir, S. Mursula, C. de Resende, J. Roberts, W. Roeger, S. Snudden. M. Trabandt, J. in ’t Veld (2012). "Effects of Fiscal Stimulus in Structural Models", American Economic Journal Macroeconomics, vol. 4, no. 1, January 2012, pp. 22-68.
- Varga J. and J. in ’t Veld (2011), "Cohesion Policy spending in the New Member States of the EU in an endogenous growth model", Eastern European Economics, vol. 49, no. 5, September-October 2011, pp. 29-54.
- Lendvai, J., L. Moulin, A. Turrini (2011), "From CAB to CAAB? Correcting Indicators of Structural Fiscal Positions for Current Account Imbalances", European Economic Paper, no. 442
- Vogel, L. (2011), "Structural reforms and external rebalancing in the euro area: a model-based analysis", European Economy Economic Paper, no. 443.
- In ’t Veld, J., R. Raciborski, M. Ratto and W. Roeger (2011), "The Recent Boom-ust Cycle: The Relative Contribution of Capital Flows, Credit Supply and Asset Bubbles", European Economic Review, 55, p. 386-406.
- Roeger W. , J. in ’t Veld and L.Vogel (2010), "Fiscal consolidation in Germany", Intereconomics, Vol. 45/6, pp. 364-71.
- Vogel, L. (2010). "China's external surplus: simulations with a global macroeconomic model", European Economy Economic Paper, no. 430.
- Roeger W., in 't Veld J. (2010), "Fiscal stimulus and exit strategies in the EU: a model-based analysis", European Economy Economic Papers no. 426.
- Varga, J., in ’t Veld, J. (2010). "The Potential Impact of EU Cohesion Policy Spending in the 2007-13 Programming Period: A Model-Based Analysis". ECFIN European Economy Economic Paper, no. 422 .
- Varga J. and J. in ’t Veld (2011) , "A Model-based Analysis of the Impact of Cohesion Policy Expenditure 2000-06: Simulations with the QUEST III endogenous R&D model", Economic Modelling, , 28, pp. 647-63. (also published as: ECFIN European Economy Economic Paper 387.)
- Lendvai J. and W. Roeger (2010), "External deficits in the Baltics 1995 to 2007: catching-up or imbalances?", European Economy Economic Paper 398.
- Roeger W., J. Varga and J. in ’t Veld (2010) , "How to close the productivity gap between the US and Europe : A quantitative assessment using a semi-endogenous growth model", European Economy Economic Paper 399
- Conte, A., Labat A., Varga J., Zarnic Z. (2010), "What is the Growth Potential of Green Innovation? An Assessment of EU Climate Change Policies", ECFIN Economic Paper 413
- Ratto M, W. Roeger and J. in ’t Veld (2010) , "Using a DSGE model to look at the recent boom-bust cycle in the US", European Economy Economic Paper 397
- Roeger W. and J. in ’t Veld (2009) , “Fiscal Policy with Credit Constrained Households”, European Economy Economic Paper 357
- Vogel, L.(2009), Macroeconomic effects of cost savings in public procurement, European Economy Economic Paper no.389
- Varga J. and J. in ’t Veld (2009) , “A model-based assessment of the macroeconomic impact of EU structural funds on the new Member States" , European Economy Economic Paper 371.
- D'Auria F., A. Pagano, M. Ratto and J. Varga (2009), "A comparison of structural reform scenarios across the EU member states: Simulation-based analysis using the QUEST model with endogenous growth". European Economy Economic Paper no.392.
- Roeger W., J. Varga and J. in ’t Veld (2009) , “Modelling the Lisbon Strategy: Analysing policies to promote knowledge investment with an endogenous growth model", Comparative Economic Studies 51: 520-539.
- Breuss F., W. Roeger and J. in ’t Veld (2009) , “Global impact of a shift in foreign reserves to euros”, Empirica, No. 1, Vol. 36, February 2009, pp. 101-122. (Also published as: European Economy Economic Paper 345.)
- Roeger W., J. Varga and J. in ’t Veld (2008) , “Structural reforms in the EU: a simulation-based analysis using the QUEST model with endogenous growth”, European Economy Economic Paper 351.
- Ratto M, W. Roeger and J. in ’t Veld (2009) , “QUEST III: An Estimated Open-Economy DSGE Model of the Euro Area with Fiscal and Monetary Policy”, Economic Modelling, 26 (2009), pp. 222-233. (Also published as: European Economy Economic Paper 335.