Advanced Search
MyIDEAS: Login

Modelling the Foreign Sector in a Macroeconometric Model of Sweden

Contents:

Author Info

  • Alsterlind, Jan

    ()
    (National Institute of Economic Research)

  • Markowski, Alek

    ()
    (National Institute of Economic Research)

  • Nilsson, Kristian

    ()
    (National Institute of Economic Research)

Registered author(s):

    Abstract

    The purpose of this paper is to estimate a rudimentary model of the “rest of the world", which may serve as the foreign sector in a model of the Swedish economy. The “rest of the world" is here represented by the US and the euro zone which together cover some two thirds of the Swedish foreign trade. The underlying theoretical model is the so-called Svensson model as of Svensson (1997). This model has the advantage that it is small and simple, but still allows for both supply and demand shocks with realistic responses. The Svensson model is estimated (OLS) for the US and the euro zone separately using quarterly data. Furthermore, following Smeets and Peersman (1999), alternative models with the outputgap treated as an unobserved component are estimated as well. Impulse response analyses indicate that all individual models react reasonably well to both supply and demand shocks. The models for the US and the euro zone are aggregated temporally to annual data (since the model of the Swedish economy uses annual data) and are subsequently aggregated into one model of the foreign sector.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.konj.se/download/18.70c52033121865b13988000108688/WP_88.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by National Institute of Economic Research in its series Working Paper with number 88.

    as in new window
    Length: 31 pages
    Date of creation: 01 Jan 2004
    Date of revision:
    Handle: RePEc:hhs:nierwp:0088

    Contact details of provider:
    Postal: National Institute of Economic Research, P.O. Box 3116, SE-103 62 Stockholm, Sweden
    Phone: 46-(0)8-453 59 00
    Fax: 46-(0)8-453 59 80
    Email:
    Web page: http://www.konj.se/
    More information through EDIRC

    Related research

    Keywords:

    This paper has been announced in the following NEP Reports:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Peersman, Gert & Smets, Frank, 1999. "The Taylor Rule: A Useful Monetary Policy Benchmark for the Euro Area?," International Finance, Wiley Blackwell, vol. 2(1), pages 85-116, April.
    2. Lars E.O. Svensson, 1999. "Price Stability as a Target for Monetary Policy: Defining and Maintaining Price Stability," NBER Working Papers 7276, National Bureau of Economic Research, Inc.
    3. Glenn D. Rudebusch & Lars E. O. Svensson, 1998. "Policy rules for inflation targeting," Working Papers in Applied Economic Theory 98-03, Federal Reserve Bank of San Francisco.
    4. Svensson, Lars E. O., 1997. "Inflation forecast targeting: Implementing and monitoring inflation targets," European Economic Review, Elsevier, vol. 41(6), pages 1111-1146, June.
    5. Rudebusch, G. & Svensson, L.E.O., 1999. "Eurosystem Monetary Targeting: Lessons from U.S. Data," Papers 672, Stockholm - International Economic Studies.
    6. Ruist, Erik, 1996. "Temporal Aggregation of an Econometric Equation," Working Paper 52, National Institute of Economic Research.
    7. Mikael Apel & Per Jansson, 1999. "System estimates of potential output and the NAIRU," Empirical Economics, Springer, vol. 24(3), pages 373-388.
    8. Scott, Alasdair, 2003. "APPLIED MACROECONOMETRICS Carlo A. Favero Oxford University Press, 2001," Macroeconomic Dynamics, Cambridge University Press, vol. 7(02), pages 313-315, April.
    9. Kuttner, Kenneth N, 1994. "Estimating Potential Output as a Latent Variable," Journal of Business & Economic Statistics, American Statistical Association, vol. 12(3), pages 361-68, July.
    10. Fagan, Gabriel & Henry, Jerome & Mestre, Ricardo, 2005. "An area-wide model for the euro area," Economic Modelling, Elsevier, vol. 22(1), pages 39-59, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:hhs:nierwp:0088. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Henrik Hellström).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.