Simulation of the impact of different hypotheses on the fiscal policy of the Generalitat de Catalunya

Methodology In order to achieve these objectives, it is proposed to set up a work team composed of members of the Department of the Vice Presidency, the Economy and Finance of the Generalitat de Catalunya (GC), and the AQR-Lab Laboratory of the University of Barcelona. The starting point will be the use of the QUEST III CT model, a model of general equilibrium of the Catalan economy that is inspired and has a clear connection with the QUEST III model of the European Commission. Both teams (GC and AQR-Lab) will participate in the search and introduction of the databases in the QUEST3CT model, in the specification of scenarios and in the writing of the study. It is proposed that the scenarios considered be broad and varied, in order to collect all kinds of possible situations. Likewise, within the same scenario, intervals (min-max) may be considered to be able to better assess different assumptions considered regarding the behavior or evolution of variables or measures of economic policy. AQR-Lab will be in charge of the application and adaptation of the QUEST III CT model to the proposed study. In this sense, it will adapt the general version of the QUEST III CT model (defining the necessary equations, and estimating and calibrating its parameters) to the analyzes required in this study, based on the assumptions agreed upon.