Economic analyses based on the combination of the micro and macro levels are increasingly in demand by political decision-makers and academic research and can form the basis for substantial contributions to the scientific evidence base. Building on the long tradition of model development at IHS, using an interdisciplinary lens by combining micro- with macro approaches.
The combination of the specific micro-simulation and macro models developed at IHS will improve the available instruments for policy analysis and will allow an assessment of the macro-economic, fiscal, and distributional consequences, but also the political consequences, social and economic policy measures. Another added value lies in the improvement of the macroeconomic forecasting instruments of IHS.
Economic activity is the origin of economic prosperity and is based on framework conditions defined by institutions, rules and allocation and distribution mechanisms. Various political criteria – such as effectiveness, efficiency, fairness, and sustainability – must be met. At IHS, the relationship between economic power and public services as well as the social effects of economic decisions are researched.