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A Detailed Derivation of the Sticky Price and Sticky Information New Keynesian DSGE Model

  • Jan-Oliver Menz


    (Department for Economics and Politics, University of Hamburg)

  • Lena Vogel


    (Department for Economics and Politics, University of Hamburg)

This paper aims at providing macroeconomists with a detailed exposition of the New Keynesian DSGE model. Both the sticky price version and the sticky information variant are derived mathematically. Moreover, we simulate the models, also including lagged terms in the sticky price version, and compare the implied impulse response functions. Finally, we present solution methods for DSGE models, and discuss three important theoretical assumptions.

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Paper provided by Hamburg University, Department Wirtschaft und Politik in its series Macroeconomics and Finance Series with number 200902.

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Length: 61 pages
Date of creation: Jul 2009
Date of revision:
Handle: RePEc:hep:macppr:200902
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