OGRE stands for Overlapping Generations and Retirement.

It is medium-scale, but tractable model solved by Matlab, Dynare and IRIS. The name also reflects the dichotomy that it is a mathematically and computationally very complicated framework (OGRE), but suitable to address several real-world issues economies have to cope with today (Fiona).

In particular, in the age of population aging, while many countries also face the risk of fiscal unsustainability, OGRE enables us to precisely investigate the macroeconomic impacts of demographic changes, pension and other fiscal policies, both in the short- and long-run.

OGRE 1.0 is available for Portugal and SpainIt has been developed by Daniel Baksa and me; Daniel is currently a PhD student at the Central European University and a Junior Research Fellow in the Hungarian Academy of Sciences. Two papers are available here.

OGRE 2.0 is available for Lithuania. Mihnea Constantinescu (Bank of Lithuania) joined us to extend OGRE by adding openness. Paper is available here.

Recently, the ECB used the OGRE model to write up two boxes in the March 2018 Economic Bulletin on aging and retirement: Stylised macroeconomic implications of ageing based on an overlapping generations model and Stylised macroeconomic effects of public pension reforms;the boxes are available here.

OGRE was invited for presentation by:
- the Deutsche Bundesbank
- the National Bank of Slovakia
- the Council for Budget Responsibility of Slovakia
- and the European Central Bank.

In addition, Daniel was providing training on OGRE for the Bank of Lithuania (March 2016) and the Spanish Independent Authority for Fiscal Responsibility (January 2018), while I teaching OGRE to IMF staff in March 2018.

There are several ongoing works based on OGRE:
- with Daniel we are investigating aging and (optimal) monetary policy transmission;
- with the ECB and numerous European central banks we are exploring the macroeconomic effect of pension reforms in Europe;
- and we recently started to work with the Spanish Independent Authority for Fiscal Responsibility who will adopt OGRE for Spain and use it for their annual fiscal sustainability reports.

A one-pager on OGRE is available here (last updated on March 4, 2018).
Zsuzsa Munkacsi,
Mar 4, 2018, 8:39 AM