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MASCOTTE: Model for AnalySing and foreCasting shOrT TErm developments

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  • Baghli, M.
  • Brunhes-Lesage, V.
  • De bandt, O.
  • Fraisse, H.
  • Villetelle, J-P.

Abstract

MASCOTTE is the new version of the Banque de France's macro-econometric forecasting model. Following the last rebasing of National Accounts (currently at 1995 price), the previous version of the model was simplified, re-specified and re-estimated. The model is essentially used for making macro-economic projections of the French economy over a two-to-three year horizon, which requires an accounting framework as close as possible to the French National Accounts. The main agents are companies, households, general government and the rest of the world. The new version now includes a supply block derived from the explicit optimisation behaviour of companies using a Cobb-Douglas technology under imperfect competition, and a new Wage Setting schedule. Full homogeneity of the nominal side of the model ensures the independence between the nominal equilibrium and the real equilibrium, the latter being only determined in the long run by relative prices. Furthermore, as regards the specification of equations, special attention was paid to the consequences of changes in short-term interest rates.

Suggested Citation

  • Baghli, M. & Brunhes-Lesage, V. & De bandt, O. & Fraisse, H. & Villetelle, J-P., 2004. "MASCOTTE: Model for AnalySing and foreCasting shOrT TErm developments," Working papers 106, Banque de France.
  • Handle: RePEc:bfr:banfra:106
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    References listed on IDEAS

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    Cited by:

    1. de Bandt, O. & Bruneau, C. & El Amri, W., 2008. "Stress testing and corporate finance," Journal of Financial Stability, Elsevier, vol. 4(3), pages 258-274, September.
    2. Villetelle, Jean-Pierre & Boissay, Frédéric, 2005. "The French block of the ESCB multi-country model," Working Paper Series 456, European Central Bank.

    More about this item

    Keywords

    Macro-economic model ; Applied econometrics ; Forecasting ; France;

    JEL classification:

    • E17 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Forecasting and Simulation: Models and Applications
    • E27 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Forecasting and Simulation: Models and Applications
    • E37 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Forecasting and Simulation: Models and Applications

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