The key features of E3ME are:
- It is structural (disaggregation of variables).
- It is organised around a social accounting matrix, i.e. on accounting principles, e.g. System of National Accounts.
- It is dynamic. It consists of behavioural equations with effects from previous outcomes: i.e. history matters.
- It is estimated on cross-section and time-series data. It identifies current-year responses and long-term trends and allows sectoral and regional differences.
- It is open with regard to economic policy. It makes no assumptions of full employment, budget balance, or balance of payments equilibrium.
- Scenario approach – computation of many scenarios with comparisons of policy packages and provides quantified explanation of results