Report on Economic Quantative Ex-Ante Assessment of DYNAMIX Policy Mixes

"The  purpose  of  deliverable  D6.2  is  to  support  with  a  quantitative  economic  assessment  the evaluation  of  a  set  of  policies  scrutinized  within  the  DYNAMIX  project, aiming  to  promote decoupling of resources use from GDP and material efficiency within the EU. The  analytical  tools  used  for  the  investigation  are  three  macro- economic  models,  ICES,MEMO  and  MEWA,  all  belonging  to  the  category  of  Computable  General  Equilibrium modelling,  but  with  complementary  characteristics.  More  specifically:  they  all  provide  a sectoral  representation  of  the  EU  economic  system  and  endogenous  price  formation.  In practice, they can assess direct and indirect policy effects on the whole economic system and the  full  macroeconomic  feedbacks,  beyond  the  sector  initially subjected  to  the  policy intervention.  However,  ICES  representing  the  EU  with  a  country  detail,  is  better  suited  to capture  intra  and  extra  EU  trade  effects.  MEWA  and  MEMO  consider  the  EU  as  a  single region,  but  differently  from  ICES,  offer  a  more  realistic  representation  of  technological change,  feature  forward  looking  agents and  have  a  richer  representation  of  labour  supply choices." (p. 10)