Socio-economic drivers - GEM-E3
|Model link||https://ec.europa.eu/clima/sites/clima/files/strategies/analysis/models/docs/gem e3 long en.pdf|
|Institution||Institute of Communication And Computer Systems (ICCS), Greece, https://www.iccs.gr/en/.|
|Solution concept||General equilibrium (closed economy)|
The main drivers of growth in the GEM-E3 model are:
- Population growth
- Technical progress
- Capital accumulation.
In the GEM-E3 model total population and active population growth rates are set exogenously. The model computes endogenously unemployment rates for skilled and unskilled labour. Technical progress can be exogenous or endogenous based on learning by doing, learning by research functions. Investment decisions by firms are endogenous and are based on Tobin's q.