Forecasting Regional Indicators Based on the Quarterly Projection Model
Korshunov D., Nelyubina A.
The paper represents a multi-regional semi-structural new Keynesian model of the Russian economy. The main feature of this tool is the possibility of addressing regional heterogeneity of the economy. In our model, we divide Russia into two macroregion: the Central Federal District and the rest of Russia. We consider the regions as two connected countries in a multicounty model under a single monetary policy. The model is a simple and convenient tool for providing support for monetary policy decision making and building macroeconomically consistent forecasts and scenarios, comprising regional specifics.