MARCOS is a calibrated rational expectation model of the French economy. It is devoted to medium-long run simulations. It has been built under the assumption of a small country with monopolistic competition on goods and labour markets. Wages bargaining is described with the right to manage model and the consumption of liquidity unconstraint households is deduced from an intertemporal optimising framework under life cycle hypothesis. MARCOS's dynamic properties are illustrated using a set of policy and international simulations.
Pascal Jacquinot and Ferhat Mihoubi
Classification JEL : E17 ; C53
Updated on: 06/12/2018 11:10