STRESS stands for Structural Reforms and Shadow Sector; it is medium-scale dynamic general equilibrium model to be solved with Matlab and Dynare. Especially since the recent economic crisis, there has been a widespread debate on the macroeconomic impact of structural reforms. STRESS is an appropriate tool to examine the aggregate short- and long-run effects of both labor and product market deregulation policies, in the presence of an informal economy and with a special focus on sequencing.

Version #1 is available for India (here) and version #2 for South Africa (here). In addition, STRESS has been used in several Article IV consultations of the Fund:

  • two selected issues papers for India from 2014 and 2017 (here and here);
  • a box in Peru's 2017 AIV report (here);
  • a selected issues paper for Argentina released in 2017 (here);
  • and a selected issues paper for Colombia from 2018 (here).

A working paper for Peru, and a selected issues paper and a working paper for Morocco are work in progress.

Recently, training was provided on STRESS in the International Monetary Fund.

A two-pager is available here (last updated on September 17, 2018).