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"NONAME": A new quarterly model for Belgium

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  • Jeanfils, Philippe
  • Burggraeve, Koen

Abstract

This paper gives an overview of the present version of the quarterly model for the Belgian economy built at the National Bank of Belgium (NBB). This model can provide quantitative input into the policy analysis and projection processes within a framework that has explicit micro-foundations and expectations. This new version is also compatible with the ESA95 national accounts. This model called Noname is relatively compact. The intertemporal optimisation problem of households and firms is subject to polynomial adjustment costs, which yields richer dynamic specifications than the more usual quadratic cost function. Other characteristics are: pricing-to-market and hence flexible mark-ups and incomplete pass-through, a CES production function with an elasticity of substitution between capital and labour below one, time-dependent wage contracting à la Dotsey, King and Wollman. Most of the equations taken individually have acceptable statistical properties and diagnostic simulations suggest that the impulse responses of the model to exogenous shocks are reasonable. Its structure allows simulations to be conducted under the assumption of rational expectations as well as under alternative expectations formations.
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  • Jeanfils, Philippe & Burggraeve, Koen, 2008. ""NONAME": A new quarterly model for Belgium," Economic Modelling, Elsevier, vol. 25(1), pages 118-127, January.
  • Handle: RePEc:eee:ecmode:v:25:y:2008:i:1:p:118-127
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    Citations

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    Cited by:

    1. International Monetary Fund, 2013. "Belgium; Technical Note on Stress Testing the Banking and Insurance Sectors," IMF Staff Country Reports 13/137, International Monetary Fund.
    2. Deák, Szabolcs & Fontagné, Lionel & Maffezzoli, Marco & Marcellino, Massimiliano, 2011. "LSM: A DSGE model for Luxembourg," Economic Modelling, Elsevier, vol. 28(6), pages 2862-2872.
    3. Geert Langenus, 2006. "Fiscal sustainability indicators and policy design in the face of ageing," Working Paper Research 102, National Bank of Belgium.
    4. V. Baugnet & L. Dresse, 2011. "Developments in private consumption over the past three years," Economic Review, National Bank of Belgium, issue ii, pages 47-58, September.
    5. K. Burggraeve & C. Piton, 2016. "The economic consequences of the flow of refugees into Belgium," Economic Review, National Bank of Belgium, issue i, pages 43-61, June.
    6. repec:nbb:ecrart:y:2017:m:june:i:i:p:43-59 is not listed on IDEAS
    7. F. De Sloover & K. Burggraeve & L. Dresse, 2012. "Belgian business investment in the context of the crisis," Economic Review, National Bank of Belgium, issue ii, pages 29-44, September.

    More about this item

    JEL classification:

    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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