TRAINING FOR LEADERSHIP

Presentation of the rational expectations model for simulation and policy evaluation of the Spanish economy (REMS) and the BDREMS database

The State Secretary for Finance and Budgets, Carlos Ocaña y Pérez de Tudela, attended the presentation of the two working documents of the results of the research into the REMS: “La BDMores en base 2000: nuevas estimaciones y variables“ [The BD.Mores regional statistics database, base 2000: new estimations and variables] and “A Rational Expectations Model for Simulation and Policy Evaluation of the Spanish Economy“. The research was funded by the Spanish Ministry of Economy and Finance (out of FEDER funds) and the Rafael del Pino Foundation.

In his speech the State Secretary emphasised: “I am sure that the REMS model is going to be very useful for obtaining a sound evaluation of the different economic policy alternatives and it will therefore provide valuable information for taking decisions that affect every individual and business in the country“.

Also taking part in the presentation were the researchers from Valencia University José Emilio Boscá, Javier Ferri, Javier Escribá and Luis Puch, led by research team leader Rafael Domenech, as well as Juan Varela, Antonio Díaz and Andrés de Bustos, from the Ministry of Economy and Finance.

Although the model’s theoretical basis is applicable to many other economies, the REMS is an instrument especially designed for the Spanish economy, which is of an intermediate size. For this reason a substantial quarterly database has been built together with the model, from 1980 to the present, which makes it possible to adapt the model to the reality of the Spanish economy, taking into account its empirical regularities over the recent decades.

The simulation model can be used by the researchers of survey services, research establishments and universities who have the appropriate expertise. The database, which is updated constantly, can be used by any economist interested in carrying out studies to analyse the empirical evidence of the Spanish economy regarding numerous aspects for which quarterly information is required on the national accounts, public accounts, labour market or foreign sector.