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An estimated DSGE model for the United Kingdom

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  • Riccardo DiCecio
  • Edward Nelson

Abstract

We estimate the dynamic stochastic general equilibrium model of Christiano, Eichenbaum, and Evans (2005) on United Kingdom data. Our estimates suggest that price stickiness is a more important source of nominal rigidity in the U.K. than wage stickiness. Our estimates of parameters governing investment behavior are only well behaved when post-1979 observations are included, which reflects government policies until the late 1970s that obstructed the influence of market forces on investment.

Suggested Citation

  • Riccardo DiCecio & Edward Nelson, 2007. "An estimated DSGE model for the United Kingdom," Working Papers 2007-006, Federal Reserve Bank of St. Louis.
  • Handle: RePEc:fip:fedlwp:2007-006
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    37. repec:rus:hseeco:317889 is not listed on IDEAS
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    Keywords

    Equilibrium (Economics) - Mathematical models ; Economic policy - Great Britain;

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