QUEST II is a dynamic macro-economic model of the world economy. It is designed to analyse the economies in the member states of the European Union and their interactions with the rest of the world, especially with the US and Japan. The focus of the model is on the transmission of the effects of shocks and economic policies, both on the domestic and the international economy.
The model is mainly used for:
simulating the effects of fiscal and monetary policy;
evaluating the European Commission structural policies (e.g. Structural Funds, Trans-Europe transport networks, Internal Market);
analysis of long-term issues (e.g. demographic changes);
analysis of short-term shocks (e.g. exchange rate shocks);
medium-term projections (over 5 years).
The model was primarily constructed to serve as a tool for policy simulation.
The main features of the model are:
EU14 (EU15 excluding Luxembourg) and the new member states (the ageing model contains the EU15, USA, Japan and the rest of the world, split into slow ageing and fast ageing);
3 sectors and 2 consumption categories;
exogenous technical progress.
QUEST II can be used either in the single-country version where the rest of the world is an aggregate of all other countries/regions or the multi-country version where individual countries are linked by endogenous (price-dependent) bilateral trade and financial flows.
AMECO, Eurostat for national accounts data