Capros P., P. Karadeloglou and G.N. Mentzas (1988) "A Large-Scale Linked System of Models for Energy and the Macroeconomy in Europe"
Paper presented at the 10th International Conference of the International Association for Energy Economics, 'Energy and Economic Growth Revisited', July 4-7, Luxembourg.
In this paper we present the main theoretical and empirical issues concerning the HERMES-MIDAS Linked System (HMLS) of models. The system intended to perform European-wide medium-term investigations of the energy-economy interactions. The macroeconomic model follows the neo-Keynesian approach to economic modelling and the energy models are specially designed for medium-term simulation. In the paper, we propose a mathematical formalism for a typical aggregate neo-Keynesian model into which we introduce energy, a general framework for designing model linkage and the results of a theoretical and empirical investigation of the properties of the original HERMES model compared to those of the linked system.
Paper available on request (hard copy only)
