Macro-economy - POLES
|Institution||JRC - Joint Research Centre - European Commission (EC-JRC), Belgium, http://ec.europa.eu/jrc/en/poles.|
|Solution concept||Partial equilibrium (price elastic demand)|
|Solution method||SimulationRecursive simulation|
The key marco-economic assumptions are derived from population and GDP.
Starting from historical data, which capture local specificities, sectoral economic activity variables are calculated:
- sectoral value added: depend on the level of development of the country/region, given by GDP per capita (industrialization phase followed by service-based economy);
- industrial physical production: depend on demand, which itself depends on the level of development;
- mobility (for passengers and for goods): depend on the cost of transport compared to income, and is declined in equipment rates and degree of utilisation of this equipment;
- buildings surfaces: depend on households size (occupancy per dwelling) and surface per dwelling, both depending on personal income.