Review of the FIDELIO model: A new generation of dynamic, econometric and general equilibrium input-output model

Abstract

This technical report reviews the FIDELIO model, a dynamic, econometric, and general equilibrium input-output model developed by the Joint Research Centre (JRC) of the European Commission. The review was conducted by a panel of experts to assess the model's scientific rigour, data foundation, empirical implementation, and peer-review status, in line with the EU's Better Regulation Policy and the Inter-Institutional Agreement on Better Law Making. The FIDELIO model is designed to estimate the socio-economic and environmental impacts of EU industrial, trade and innovation policies for a fair and sustainable EU economy, mostly oriented to demand policies but also flexible to incorporate supply policy shocks, too. It is built on a solid foundation of the FIGARO database, which is maintained by Eurostat, and aims to capture spillover and rebound effects to quantify impacts on jobs, growth, investments, resource use, emissions, and trade balance. The model has evolved through several versions, with the latest iteration featuring improvements in modularity, flexibility, and dynamic structure.