The CARMEN (Computable Analysis of the Regional Multipliers of the European economy) model, developed by the JRC, allows for a wide range of policy-relevant impact analyses at territorial and industry level.
It is developed in a modular approach allowing, for the first time, for the clustering of groups of regions (i.e. Automotive Regional Alliance) of a common industry (i.e. manufacture of motor vehicles) throughout the EU, and looking into its upstream regional value chains.
The model has an unique capability to evaluate the short-term economic effects of external shocks, delivering outcomes with detailed insights into industry-specific and regional implications.
CARMEN’s main input is the FIGARO-REG multi-regional input-output (MRIO) table, which encompass a complete description of all bilateral trade flows between 288 regions, for intermediate and final uses, as well as with other non-EU countries.
This allows the measurement of the gross value added (GVA) embodied in exports or in the final demand specific products by NUTS 2 region. As such, it enables an understanding of the potential impact that economic shocks may have on activities in different regions.
The findings of the CARMEN model should be interpreted as a detailed snapshot of trade in terms of value added, rather than as an analysis of the effects of policy shocks on GVA.
The CARMEN model is an activity under the AMADEUS project.
