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Romanian Economy Modelling in the presence of Financial Frictions

Author

Listed:
  • Oana Simona HUDEA (CARAMAN)

    (Academia de Studii Economice, Bucuresti, Romania)

Abstract

The sphere of economic modelling has continuously evolved, revealing new issues to be considered for a more grounded analysis of the features specific to a real economy. Based on the dynamic stochastic general equilibrium class of models and including increasingly important elements, like the price and wage stickiness, the capital utilisation rate or the investment adjustment costs and, last but not least, the financial frictions, this study is dedicated to the estimation of several key parameters of the Romanian economy, outlining the general characteristics of the latter and indicating the direction towards which it is moving. The estimation outcomes, arising on the basis of the Bayesian approach, herein presented and construed, prove to be compliant, to a large extent, with own previous results, as well as with the related specialty literature.

Suggested Citation

  • Oana Simona HUDEA (CARAMAN), 2015. "Romanian Economy Modelling in the presence of Financial Frictions," Romanian Statistical Review Supplement, Romanian Statistical Review, vol. 63(9), pages 19-26, September.
    • Handle: RePEc:rsr:supplm:v:63:y:2015:i:9:p:19-26
    as

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    References listed on IDEAS

    as
    1. Rossana Merola, 2013. "The role of financial frictions during the crisis: An estimated DSGE model," Working Paper Research 249, National Bank of Belgium.
    2. Bernanke, Ben S. & Gertler, Mark & Gilchrist, Simon, 1999. "The financial accelerator in a quantitative business cycle framework," Handbook of Macroeconomics, in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 21, pages 1341-1393, Elsevier.
    3. Merola, Rossana, 2015. "The role of financial frictions during the crisis: An estimated DSGE model," Economic Modelling, Elsevier, vol. 48(C), pages 70-82.
    4. Frank Smets & Rafael Wouters, 2007. "Shocks and Frictions in US Business Cycles: A Bayesian DSGE Approach," American Economic Review, American Economic Association, vol. 97(3), pages 586-606, June.
    5. Andreica, Madalina Ecaterina & Andreica, Marin, 2014. "Forecast of Romanian Industry Employment using Simulation and Panel Data Models," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 130-140, June.
    6. Elena Bugudui, 2015. "Econometric Analysis of Panel Data for Gender and Age Differences in the Unemployment in Romania," Knowledge Horizons - Economics, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 7(1), pages 164-169, March.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    stochastic analysis; general equilibrium model; Bayesian estimation; price and wage stickiness; financial frictions;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money

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