Econometric and Financial Modelling
Europe Economics employs highly-qualified quantitative economists and econometricians. Our philosophy of focusing on the development of individual skills across sectors, rather than restricting employees to sectoral teams, ensures that these skills are available to all clients.
Our quantitative economists and econometricians possess a wealth of skills, including the development of complex spreadsheet models developed in both Excel and VBA; the application of sophisticated cross-sectional, time-series and panel data econometric models to real-world policy issues; and the capacity to build agent-based models in non-standard programmes such as Laboratory for Simulation Development.
Many of our staff are very knowledgeable about regulated industries, and possess the necessary skills and knowledge to develop complex cost models. These have included ”bottom-up” cost models in the telecoms sector, and several models to estimate the cost of capital in the water and aviation sectors.
We have applied our econometrics and modelling skills in a wide range of contexts, including:
- European Patent Office — we employed discrete-choice models to investigate the impact of procedural fees on applicant behaviour, and duration models to assess the impact of renewal fees on patent life.
- London Chamber of Commerce and Industry — we built an agent-based model to assess the competitiveness of London vis-à-vis emerging competitors such as Shanghai, Dubai and Mumbai.
- Ofwat — we reviewed the econometric modelling framework used by the UK water regulator in its comparative efficiency analysis, including a review of assumptions, an assessment of alternative modelling techniques, and recommendations for the next round of price controls.
- Communities and Local Government — we have developed complex spreadsheet models in a number of projects in the field of energy efficiency. These included:
- Development of models to find the most cost-effective way to meet a 25 per cent reduction in carbon emissions from new domestic and non-domestic buildings.
- A model that, in the context of zero-carbon homes, optimised environmental and economic costs and benefits over a 15-year time horizon across multiple technologies and development types.
Our experts in econometric and financial modelling are Andrew Lilico, Pau Salsas and Stefano Ficco.
Primary Contacts: Andrew Lilico, Pau Salsas