Advanced Search
MyIDEAS: Login

QMM. A steady state version

Contents:

Author Info

  • Ásgeir Daníelsson
Registered author(s):

    Abstract

    This paper studies long-run characteristics of the quarterly macro model (QMM) used at the Central Bank of Iceland; it studies if there exists a balanced growth path that QMM will replicate and if it will converge to this path. It concludes that there is no such path and therefore the model does not converge to it. The paper then studies which adjustments to QMM are required to produce a model for which there exists a realistic balanced growth path. The new model is derived with minimum changes to speci?c equations in QMM and should therefore retain its key dynamic properties. The paper checks this by comparing impulse-responses from the new balanced growth compatible model to those from QMM. Finally, the paper studies some important variables in the Icelandic economy: capital output ratio, share of wage cost, real rate of interest and equilibrium real exchange rate and their calibration for QMM. It also discusses calibration of long-run values for the exogenous variables in the model and uses the balanced growth compatible model together with these long-run values of the exogenous variables to estimate equilibrium values for endogenous variables in QMM.

    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.sedlabanki.is/lisalib/getfile.aspx?itemid=7433
    Download Restriction: no

    Bibliographic Info

    Paper provided by Department of Economics, Central bank of Iceland in its series Economics with number wp44.

    as in new window
    Length:
    Date of creation: Nov 2009
    Date of revision:
    Handle: RePEc:ice:wpaper:wp44

    Contact details of provider:
    Postal: Kalkofnsvegi 1, 150 Reykjavik
    Phone: 569-9600
    Fax: 569-9605
    Email:
    Web page: http://www.sedlabanki.is/
    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. Robert Tchaidze, 2007. "Estimating Iceland's Real Equilibrium Exchange Rate," IMF Working Papers 07/276, International Monetary Fund.
    2. Engelbert Stockhammer & Stefan Ederer, 2008. "Demand effects of the falling wage share in Austria," Empirica, Springer, vol. 35(5), pages 481-502, December.
    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:ice:wpaper:wp44. 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: (Central Bank of Iceland).

    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.