In this paper we estimate a Bayesian SDGE model using the computer program "Dynare" by Michel Juillard. We present an estimated open economy version of a model for the Euro area. This is an extension of the SDGE model by Smets and Wouters (2003). Based on input/output tables we present a number of sub-versions of a structural core model which are partly calibrated and partly estimated. The core model has various sectors and the parameters which characterize the different sectors vary across the different sub-versions of the model. The alternative parameterizations reflect the most common open economy features such as modelling tradables versus non-tradables or the empirical importance of modelling imported energy as input factors. This comparative exercise might help us to judge the relative empirical relevance of these concepts. Moreover, we are able to judge the empirical importance of different mechanisms to describe the pass-through of foreign prices such as imperfect competition, adjustment costs and pricing to market.
Download Info
To our knowledge, this item is not available for
download. To find whether it is available, there are three
options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page
whether it is in fact available.
3. Perform a search for a similarly titled item that would be
available.
Find related papers by JEL classification: E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit