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Une évaluation structurelle du ratio de sacrifice dans la zone euro

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  • Jérôme Coffinet✝
  • Céline Poilly✝✝

Abstract

In this paper, we seek to evaluate the sacrifice ratio of the euro area using a small DSGE model where prices and wages are sticky. We estimate model?s parameters so as to minimize the distance between VAR-based and model-based covariances of a set of variables. The estimated value of the sacrifice ratio reaches 1.30%. In a second step, we proceed to a set of conterfactual exercises in order to highlight the link between the sacrifice ratio and the degree of prices and wages stickiness. We obtain that a decrease of prices stickiness does not necessary result in a decrease of the sacrifice ratio. In addition, the sacrifice ratio rises with the degree of wage stickiness.

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Bibliographic Info

Article provided by Dalloz in its journal Revue d'économie politique.

Volume (Year): Volume 119 (2009)
Issue (Month): 2 ()
Pages: 273-299

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Handle: RePEc:cai:repdal:redp_192_0273

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Web page: http://www.cairn.info/revue-d-economie-politique.htm

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Keywords: sacrifice ratio ; sticky prices and sticky wages ; DSGE model;

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