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A Microfounded Sectoral Model for Open Economies

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  • Plasmans, J.E.J.
  • Fornero, J.
  • Michalak, T.

    (Tilburg University, Center for Economic Research)

Abstract

Numerical simulations of the two-country sectoral model are provided for a relatively large number of structural shocks as domestic and foreign productivity shocks in final tradables and non-tradables, money demand shocks and a shock in the exchange rate. Such a model is well suited for monetary policy analysis at the international level and risk analysis.

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Bibliographic Info

Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2007-39.

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Date of creation: 2007
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Handle: RePEc:dgr:kubcen:200739

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Web page: http://center.uvt.nl

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Keywords: New Keynesian open economy model; tradable and non-tradable sectors; final and intermediate goods; log-linearization;

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References

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Cited by:
  1. Bas, Maria & Ledezma, Ivan, 2007. "Market Access and the Evolution of within Plant Productivity in Chile," Economics Papers from University Paris Dauphine 123456789/6913, Paris Dauphine University.
  2. Jorge A. Fornero, 2010. "Ricardian Equivalence Proposition in a NK DSGE Model for two Large Economies: The EU and the US," Working Papers Central Bank of Chile 563, Central Bank of Chile.

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