EUROMON: the multi-country model of De Nederlandsche Bank
This Occasional Study wraps up the modelling work that has been done in recent years regarding DNB's multi-country model EUROMON. It offers a description of the current version of the model and provides information about its simulation properties through the analysis of variety of standard scenarios. EUROMON is an estimated multi-country model. The current version includes 13 individual country models plus a trade block providing the international linkages between these countries. The 13 countries are the EMU-participants Germany, France, Italy, Spain, the Netherlands, Belgium, Austria and Finland, the EU-countries of the United Kingdom, Sweden and Denmark, plus the United States and Japan. The country models all share the same basis structure. Differences mainly relate to distinct values of model parameters and speeds of adjustment, and in some cases to slightly different specifications of equations in order to allow for specific institutional features of individual countries. EUROMON is a neo-Keynesian model in spirit, combining a vertical supply curve in the long run with an important role for demand factors in the short-run determination of output. The model incorporates a wage bargaining framework which makes the long-run supply curve dependent on real factors, such as tax policies. EUROMON is an aggregate model, with no further breakdown in sectors or categories of goods and services. The current version of the model is backward-looking. The study concludes by addressing the main shortcomings and strong features of the model that require further attention.
|Date of creation:||Feb 2006|
|Date of revision:|
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- Martin M.G. Fase, 1998. "On Money and Credit in Europe," Books, Edward Elgar, number 1550, April.
- W. Bolt & P.J.A. van Els, 2000.
"Output Gap and Inflation in the EU,"
DNB Staff Reports (discontinued)
44, Netherlands Central Bank.
- Philippe Jeanfils, 2000.
"A model with explicit expectations for Belgium,"
Working Paper Research
04, National Bank of Belgium.
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"An estimated dynamic stochastic general equilibrium model of the euro area,"
Working Paper Research
35, National Bank of Belgium.
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- Demertzis, Maria & Van Els, Peter & Peeters, H.M.M., 2002.
"EUROMON: De Nederlandsche Bank's multi-country model,"
29634, University Library of Munich, Germany.
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- Layard, Richard & Nickell, Stephen & Jackman, Richard, 2005.
"Unemployment: Macroeconomic Performance and the Labour Market,"
Oxford University Press, number 9780199279173, July.
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- Hamid Faruqee & Douglas Laxton & Bart Turtelboom & Peter Isard & Eswar Prasad, 1998. "Multimod Mark III: The Core Dynamic and Steady State Model," IMF Occasional Papers 164, International Monetary Fund.
- Raymond Torres & John P. Martin, 1989. "Potential Output in the Seven Major OECD Countries," OECD Economics Department Working Papers 66, OECD Publishing.
- Jørgen Elmeskov, 1993. "High and Persistent Unemployment: Assessment of the Problem and Its Causes," OECD Economics Department Working Papers 132, OECD Publishing.
- Fagan, Gabriel & Henry, Jerome & Mestre, Ricardo, 2005. "An area-wide model for the euro area," Economic Modelling, Elsevier, vol. 22(1), pages 39-59, January.
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