A Long-run Macroeconomic Model of the Austrian Economy (A-LMM) - New Results (2014)

We use the Austrian Long-run Macroeconomic Model (A-LMM) for a long-term projection of the Austrian economy until 2070. Our baseline scenario is the input for micro-simulation models of the Austrian pension insurance system. A-LMM is a neoclassical growth model replicating stylised facts about growing market economies. The current model update incorporates recent information from labour market and national accounts data. Compared to the previous report we now project slightly higher labour market participation rates and – due to the lower starting value in 2013 – a lower level of real output.