Policy analysis and modelling

The unit specialises in the analysis and evaluation of economic policies ranging from of environmental policies to tax policies and large infrastructure investments. The unit develops and maintains two large, applied general equilibrium models of the Finnish economy. The VATTAGE-model is a dynamic model with rich detail on indirect and direct taxation, energy consumption, and the dynamics of public sector expenditures, whereas the VERM-model is directed towards regional detail and regional policies. In addition, the unit also uses various versions of the GTAP-model family in applications ranging from EU energy policy analysis to the evaluation of the costs of the Baltic Sea Protection agreement.