DREAM, Danish Research Institute for Economic Analysis and Modelling

The DREAM group is an independent semi-governmental institution which conducts a variety of statistical and descriptive analyses of the Danish economy. Its core task is to undertake long run structural analysis of the Danish economy with an emphasis on the relationship between the public and private sectors. The so called DREAM-model consists of projections of population, education and labor supply, which feed into the computable general equilibrium dynamic macroeconomic model which is calibrated to the Danish economy. These different components allow the DREAM group to perform economic analysis, with a particular emphasis on investigating the public finance sustainability of economic policy. The DREAM group has also developed both a static general equilibrium model, the REFORM model, and a dynamic micro-simulation model, the SMILE model. The core focus of the REFORM model is the input-output structure of the Danish economy and is used to evaluate the impact of productivity and competition characteristics of the different sectors and the impact of tax policy on inter-sector activity and on the aggregate economy. The core focus of the microsimulation model SMILE is to evaluate distributional impacts across regions and population groups of public policy changes. The DREAM group also conduct research and analysis on behalf of various clients. DREAM's customers include ministries, NGOs, think-tanks, etc.