A multi-country general equilibrium model for the European Union : the basic features and the coding structure

This paper has provided an introduction to a multi-country model applied to the European Union which can be used to tackle fiscal policies questions in a static framework. We provide in addition a code written in GAMS, which accomodates the model specification in a concise and transparent framework. The effort has been put in trying to simplify the implementation of the model as much as possible by using a consistent way of specifying each single equation. This work has been done as a part of a common project in which 5 groups are involved. In addition to providing a convenient common framework for these model-builders, this paper can also be useful for people who wants to start exploiting the applied general equilibrium analysis to investigate fiscal policy issues. Further work is underway in the development of the model it-self by each single group working in the network.