“…The effects of the two layers combine to generate regional growth: the regional, supply-side growth model also provides the potential gross domestic product (GDP) of the national one, whose structure is demand side in many respects but also incorporates some competitiveness, demand-side aspects that are homogeneous at country level. In the GMR model (Varga 2015, this special issue), the regional aspects interact with the national ones due to the interaction of three submodels, of which two are regional and the third is national. The national model borrows from the quarterly economic simulation tool (QUEST) III model a dynamic stochastic general equilibrium model at national level developed for the Eurozone (Ratto, Roeger, and in't Veld 2009).…”