OGRE Model

OGRE stands for Overlapping Generations and Retirement, and it is a medium-scale dynamic general equilibrium model solved by Matlab, Dynare, and IRIS. OGRE was jointly developed with Daniel Baksa. In the age of population aging, when many countries face the risk of fiscal unsustainability, OGRE enables us to explore the macroeconomic and fiscal impacts of demographic changes, pension and fiscal policies, both in the short and in the long run. This can highly facilitate solid, timely and well-designed economic policy-making. The abbreviation reflects the dichotomy between a mathematically and computationally complicated framework ("ogre"), and its suitability to address a plenty of real-world policy challenges ("Fiona").

OGRE 1.0 is available for Portugal and Spain, and OGRE 2.0 for Lithuania. The latter is an extended version with a small open-economy setting.

Recently, the European Central Bank used OGRE for the March 2018 Economic Bulletin. There are several further applications in progress, such as a European Central Bank Occasional Paper for Portugal and Slovakia, and an IMF / Bank of Lithuania Working Paper on aging and (optimal) monetary policy.

OGRE was invited for presentation by quite a few institutions, such as the Deutsche Bundesbank, the National Bank of Slovakia, the Council for Budget Responsibility of Slovakia, and the European Central Bank.

Furthermore, by invitation, training was also provided for the Bank of Lithuania, the Spanish Independent Authority for Fiscal Responsibility, and the International Monetary Fund.

A one-pager on OGRE is available here with more detail (last updated on September 14, 2018).