Laurence Kotlikoff Describes the Multiregional General Equilibrium Model of the Global Economy

On 24 October, Head of the International Department of Fiscal Sustainability and Professor at Boston University Laurence Kotlikoff delivered his presentation titled ‘Using the Global Gaidar Model to Simulate the World's Dynamic Demographic, Fiscal, Technological and Economic Transition’.

The presentation was part of the scientific seminar ‘The Use of Modern Computational Methods for Modeling Economic Processes’ organized by the International Department of Fiscal Sustainability of the Gaidar Institute and the RANEPA, the Laboratory for Studies of Economic Growth Issues of the Institute for Social Analysis and Prediction (ISAP) of the RANEPA, the Laboratory for Mathematical Modeling of Economic Processes of the ISAP, and the Center for Economic Modeling in Power Engineering and Environmental Protection of the ISAP.

Dr Kotlikoff is one of the world’s leading experts in economics and macroeconomics, the author of more than 100 articles published in top peer reviewed journals, including The American Economic Review, The Journal of Public Economics, The Journal of Monetary Economics, The Journal of Political Economy, etc. Laurence Kotlikoff described the multiregional intergenerational general equilibrium model of the global economy currently being developed by the International Department of Fiscal Sustainability, led by him and set up jointly with the Gaidar Institute.

The model makes it possible to analyze the main demographic, technological and fiscal changes specific to each region incorporated in the model, including the growth speed of the global economy as a whole and across regions, convergence trends, and the impact of the emerging labor saving technologies and robotization on long-term economic development of countries (until 2100).

Among the other participants in the seminar were Felix Kubler, Professor of Financial Economics at the University of Zurich and SFI Senior Chair at Swiss Finance Institute; Simon Scheidegger, Assistant Professor of the Department of Finance at HEC Lausanne, University of Lausanne; the International Department of Fiscal Sustainability’s staff; a number of researchers from the ISAP of the RANEPA and the Gaidar Institute; RANEPA students; and representatives of NRU HSE and other institutions.

The presentations by experts were listened to with great interest and followed with lively discussions of the uses of computational methods in macroeconomic modeling.

The presentation by Laurence Kotlikoff can be viewed here