OGRE Model

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

OGRE 1.0 is available for Portugal and Spain, and OGRE 2.0 for Lithuania. OGRE 2.0 is an extended small open-economy version of OGRE 1.0.

Recently, the European Central Bank released the March 2018 Economic Bulletin which was partly based on OGRE. There are several other ongoing applications, such as a European Central Bank Occasional Paper for Portugal and Slovakia, a European Central Bank Working Paper on pension reform reversals, and an IMF / Bank of Lithuania Working Paper on aging and (optimal) monetary policies.

OGRE was invited for presentation by numerous institutions, including 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 provided for Bank of Lithuania staff, the Spanish Independent Authority for Fiscal Responsibility, and the International Monetary Fund.

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