The Hermès-France model,
by Eric Faubry, Jean-Eudes Moncomble, Olivier Vidal de la Blache, Paul Zagamé.
The Hermès-France model is the French part of a system of dynamic econometric medium-term models representing the economies of the EEC Nine economic branches are distinguished, among which three represent industry, in the accounting system of S.0.E.C. Energy has been modelled specifically: it is considered as a specific production factor in productive branches and the energetic choices of households and the productive sector are described in a detailed nomenclature of eight energetic products. Therefore, such a system of models permits to improve the analysis of macro-sectoral phenomena, because of three substantial contributions:
the direct integration of energy into the sectoral production functions allows a finer study of questions related to employment, investment, productivity, competitivity, by reference to a mean price of energy use;
the study of choice behaviour between various utilized forms of energy in terms of prices: a price variation for one kind modifies the choice structure, the mean price of energy and, hence, the global demand for energy and for other production factors;
finally, the growing interpénétration of European economies leads, even on medium term, to the use of linked models for a better understanding of competitivity and redistribution effects of the productive activities.
The construction of the Hermès model has led to original econometric contributions: estimation of sectoral "putty-clay energy" production functions and use of dynamic "translog" functions in order to describe the allocation of energy between the different products. These works have permitted to corroborate, on a sectoral level, results established from a global point of view, i.e. the complementarity of investment and energy considered as production factors : the rise of the price of energy has contributed to lower the productive investment rate in French industrial sectors.
The Hermès model will be utilized for forecasts or alternative studies. "Linked" utilizations will simultaneously use the models of different countries, the interface being made of bilateral flows. The utilizations in which the national models will work alone will be used by decentralized teams. Therefore, each country will benefit from a new model in which energy will be a specific production factor for industry.
The Hermès-France model, by Eric Faubry, Jean-Eudes Moncomble, Olivier Vidal de la Blache, Paul Zagamé. The Hermès-France model is the French part of a system of dynamic econometric medium-term models representing the economies of the EEC Nine economic branches are distinguished, among which three represent industry, in the accounting system of S.0.E.C. Energy has been modelled specifically: it is considered as a specific production factor in productive branches and the energetic choices of households and the productive sector are described in a detailed nomenclature of eight energetic products. Therefore, such a system of models permits to improve the analysis of macro-sectoral phenomena, because of three substantial contributions: the direct integration of energy into the sectoral production functions allows a finer study of questions related to employment, investment, productivity, competitivity, by reference to a mean price of energy use; the study of choice behaviour between various utilized forms of energy in terms of prices: a price variation for one kind modifies the choice structure, the mean price of energy and, hence, the global demand for energy and for other production factors; finally, the growing interpénétration of European economies leads, even on medium term, to the use of linked models for a better understanding of competitivity and redistribution effects of the productive activities. The construction of the Hermès model has led to original econometric contributions: estimation of sectoral "putty-clay energy" production functions and use of dynamic "translog" functions in order to describe the allocation of energy between the different products. These works have permitted to corroborate, on a sectoral level, results established from a global point of view, i.e. the complementarity of investment and energy considered as production factors : the rise of the price of energy has contributed to lower the productive investment rate in French industrial sectors. The Hermès model will be utilized for forecasts or alternative studies. "Linked" utilizations will simultaneously use the models of different countries, the interface being made of bilateral flows. The utilizations in which the national models will work alone will be used by decentralized teams. Therefore, each country will benefit from a new model in which energy will be a specific production factor for industry.
