New EU model revolutionizes economic policy analysis for entire region!
The article presents a new model for studying the European Union as a whole, instead of looking at individual countries separately. The researchers used a special method to estimate the equations in the model, taking into account changes in the long-term relationships between variables. They found that this aggregate model fits the data well and can be useful for analyzing economic policies. The results suggest that it is possible to define behavioral equations for the EU at a higher level, and simulations support the effectiveness of this approach.