The German Block of the Escb Multi-Country Model

73 Pages Posted: 8 Aug 2006

See all articles by Igor Vetlov

Igor Vetlov

Bank of Lithuania

Thomas Warmedinger

European Central Bank (ECB)

Date Written: July 2006


The paper presents the German block of the ESCB multi-country model. It builds on previous modelling work on the Area Wide Model and other country blocks of the ESCB multicountry-model. Whilst being analogous to these models in following a common modelling approach and the same theoretical framework, the German model has also some unique features for instance with regard to the modelling of the investment components, imports and employment. The paper provides a brief overview of the theoretical framework of the model, its estimation results, and a discussion of the dynamic model properties. The model is primarily used for preparing quarterly projections for the German economy as well as for policy analysis.

Keywords: Macro-econometric Modelling, Germany

JEL Classification: C3, C5, E1, E2

Suggested Citation

Vetlov, Igor and Warmedinger, Thomas, The German Block of the Escb Multi-Country Model (July 2006). ECB Working Paper No. 654, Available at SSRN: or

Igor Vetlov (Contact Author)

Bank of Lithuania ( email )

Totoriu 4
Vilnius, LT-01121

Thomas Warmedinger

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314

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