A DSGE Model from the Old Keynesian Economics: An Empirical Investigation
AbstractIn this paper we estimate a DSGE model built along the lines of the recent FarmerÂ¡Â¯s micro-foundation of the General Theory. Estimating a simple demand-driven competitive-search model, we test the ability of this new theoretical proposal to match the behaviour of the US and Euro Area labour markets. We show that within a relatively simple model we are able to fairly replicate their salient features, confirming for instance the conventional wisdom according to which the US labour market is more flexible than its Euro Area counterpart. Moreover, we provide an estimation of the not-yet-measured (unobserved) Euro Area job vacancies time series.
Download InfoIf 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.
Bibliographic InfoPaper provided by Centre for Dynamic Macroeconomic Analysis in its series CDMA Working Paper Series with number 201014.
Date of creation: 18 Oct 2010
Date of revision:
Contact details of provider:
Postal: School of Economics and Finance, University of St. Andrews, Fife KY16 9AL
Phone: 01334 462420
Fax: 01334 462444
Web page: http://www.st-andrews.ac.uk/cdma
More information through EDIRC
Old Keynesian Economics; Competitive Search; DSGE Model; Bayesian Estimation.;
Find related papers by JEL classification:
- E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
- E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
- J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-10-30 (All new papers)
- NEP-CBA-2010-10-30 (Central Banking)
- NEP-EEC-2010-10-30 (European Economics)
- NEP-MAC-2010-10-30 (Macroeconomics)
- NEP-MIC-2010-10-30 (Microeconomics)
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.:
- Ferre De Graeve, 2008.
"The external finance premium and the macroeconomy: US post-WWII evidence,"
Working Papers, Federal Reserve Bank of Dallas
0809, Federal Reserve Bank of Dallas.
- De Graeve, Ferre, 2008. "The external finance premium and the macroeconomy: US post-WWII evidence," Journal of Economic Dynamics and Control, Elsevier, Elsevier, vol. 32(11), pages 3415-3440, November.
- De Graeve Ferre, 2007. "The External Finance Premium and the Macroeconomy: US post-WWII Evidence," Money Macro and Finance (MMF) Research Group Conference 2006, Money Macro and Finance Research Group 83, Money Macro and Finance Research Group.
- Ferre De Graeve, 2006. "The External Finance Premium and the Macroeconomy: US post-WWII Evidence," Computing in Economics and Finance 2006, Society for Computational Economics 84, Society for Computational Economics.
- F. Degraeve, 2007. "The External Finance Premium and the Macroeconomy: US post-WWII Evidence," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium, Ghent University, Faculty of Economics and Business Administration 07/482, Ghent University, Faculty of Economics and Business Administration.
- Gelain, Paolo & Guerrazzi, Marco, 2014. "A demand-driven search model with self-fulfilling expectations: The new `Farmerian' framework under scrutiny," MPRA Paper 55773, University Library of Munich, Germany.
- Roger E.A. Farmer, 2012.
"The Evolution of Endogenous Business Cycles,"
NBER Working Papers
18284, National Bureau of Economic Research, Inc.
- Farmer, Roger E A, 2012. "The Evolution of Endogenous Business Cycles," CEPR Discussion Papers, C.E.P.R. Discussion Papers 9080, C.E.P.R. Discussion Papers.
- Roger E. A. Farmer, 2012. "The Evolution of Endogenous Business Cycles," Working Papers 302012, Hong Kong Institute for Monetary Research.
- Roger E.A. Farmer, 2009.
"Confidence, Crashes and Animal Spirits,"
NBER Working Papers
14846, National Bureau of Economic Research, Inc.
- Guerrazzi Marco, 2012.
"Expectations, Employment and Prices: A Suggested Interpretation of the New «Farmerian» Economics,"
Società editrice il Mulino, issue 3, pages 369.
- Guerrazzi, Marco, 2010. "Expectations, employment and prices: a suggested interpretation of the new 'farmerian' economics," MPRA Paper 30832, University Library of Munich, Germany.
- Marco Guerrazzi, 2011. "Expectations, Employment and Prices: A Suggested Interpretation of the New â€˜Farmerianâ€™ Economics," Discussion Papers 2011/116, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
- Marco Guerrazzi, 2010. "How to Reduce Unemployment: Notes on Macro-Economic Stability and Dynamics," Discussion Papers 2010/106, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
- Marco Guerrazzi, 2012. "The â€˜Farmerianâ€™ Approach to Ending a Finance-Induced Recession: Notes on Stability and Dynamics," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 41(1-2), pages 81-99, 02.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bram Boskamp).
If references are entirely missing, you can add them using this form.