An estimated dynamic stochastic general equilibrium model of the euro area
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Citations
Shocks and Frictions in US Business Cycles: A Bayesian DSGE Approach
Shocks and frictions in US business cycles: A Bayesian DSGE approach
House Prices, Borrowing Constraints, and Monetary Policy in the Business Cycle
When Is the Government Spending Multiplier Large
Understanding the Effects of Government Spending on Consumption
References
Interest Rates, Inflation, and Federal Reserve Policy Since 1980
Model-based inflation forecasts and monetary policy rules
An area-wide model (AWM) for the euro area
Comparing Dynamic Equilibrium Models to Data
Technology shocks and the business cycle: On empirical investigation
Related Papers (5)
Frequently Asked Questions (5)
Q2. What is the effect of a positive preference shock on investment?
Graph 7 shows that a positive preference shock, while increasing consumption and output significantly, has a significant negative crowding-out effect on investment.
Q3. What is the argument that monetary authorities should not accommodate such variations?
As these shocks give rise to inefficient variations in the flexible-price-and-wage level of output, one can argue that monetary authorities should not accommodate such variations and instead try to keep output at its efficient level.
Q4. What are the parameters that can be estimated from the mean of the observable variables?
Most of these parameters can be directly related to the steady-state values of the state variables and could therefore be estimated from the means of the observable variables (or linear combinations of them).
Q5. What is the degree of stickiness of the price and wage curves?
Only when they assume decreasing returns to scale and an upward-sloping marginal cost curve, Gali, Gertler and LopezSalido (2000) estimate a more reasonable degree of price stickiness that is comparable with what the authors estimate for wages.