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MELEZE: A DSGE model for France within the Euro Area

Listed author(s):
  • B. CAMPAGNE

    (Insee)

  • A. POISSONNIER

    (Insee)

MELEZE, standing for Modèle économique linéarisé déquilibre en zone euro (linearised economic model of equilibrium in the euro area), is a new Keynesian DSGE model with the following characteristics: France and the rest of the Euro area form a monetary union; they are populated by infinitely lived households, of which a constant fraction is non Ricardian, consuming all of their current income; firms operate in monopolistic competition on the goods market, and so do workers on the labour market indistinctly of their financial constraints; prices and wages are sticky; consumption and investment goods can be freely exported/imported, whereas workers and installed capital cannot. The present paper presents the resolution and the calibration of the model as well as its full linearisation. In particular, we characterize the unique steady state in levels for the real variables and explicit the induced constraints on the parametrisation. In a second part, we present the behaviour of our model with respect to standard transitory shocks.

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File URL: https://www.insee.fr/en/statistiques/fichier/2022155/G2016-05.pdf
File Function: Document de travail de la DESE numéro G2016-05
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Paper provided by Institut National de la Statistique et des Etudes Economiques, DESE in its series Documents de Travail de la DESE - Working Papers of the DESE with number g2016-05.

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Date of creation: 2016
Handle: RePEc:crs:wpdeee:g2016-05
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