"QUEST III: An estimated open-economy DSGE model of the Euro area with fiscal and monetary policy"
Authors: Marco Ratto, Werner Roeger, Jan in 't Veld
Publisher: Economic Modelling, 26 (2009), 222-233.
Latest update: 08/10/2009
"The recent boom–bust cycle: The relative contribution of capital flows, credit supply and asset bubbles"
Authors: Jan In't Veld, Rafal Raciborski, Marco Ratto, Werner Roeger,
Publisher: European Economic Review, 55 (2011), 86-406.
Latest update: 28/07/2011
QUEST III belongs to the class of New-Keynesian Dynamic Stochastic General Equilibrium (DSGE) models that are now widely used by international institutions and central banks. These models have rigorous microeconomic foundations derived from utility and profit optimisation and include frictions in goods, labour and financial markets. With empirically plausible estimation and calibration they are able to fit the main features of the macroeconomic time series. The JRC and DG ECFIN estimated the QUEST III model on euro area and US data, as well as for individual euro area member states, using Bayesian estimation methods.
Since 2015 the Joint Research Centre is also supporting DG COMP in the macroeconomic assessment of competition policy enforcement in the European Union using QUEST model based simulations. The analysis makes use of EU Competition Authority cartel and merger cases and simulates their macroeconomic impact.