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DSGE Modeling at the Fund; Applications and Further Developments

Author

Listed:
  • Dennis P Botman
  • David Rose
  • Douglas Laxton
  • Philippe D Karam

Abstract

Researchers in policymaking institutions have expended significant effort to develop a new generation of macro models with more rigorous microfoundations. This paper provides a summary of the applications of two of these models. The Global Economy Model is a quarterly model that features a large assortment of nominal and real rigidities, which are necessary to create plausible short-run dynamics. However, because this model is based on a representative-agent paradigm, its Ricardian features make it unsuitable to study many fiscal policy issues. The Global Fiscal Model, which is an annual model that uses an overlappinggenerations structure, has been designed to analyze the longer-term consequences of alternative fiscal policies.

Suggested Citation

  • Dennis P Botman & David Rose & Douglas Laxton & Philippe D Karam, 2007. "DSGE Modeling at the Fund; Applications and Further Developments," IMF Working Papers 07/200, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:07/200
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    References listed on IDEAS

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    Cited by:

    1. Nebile KORUCU GUMUSOGLU & Julide YILDIRIM & Semsettin KARASU, "undated". "The Effect of Civilian Unemploment on Reenlistment Decision in Turkish Armed Forces," EcoMod2010 259600095, EcoMod.
    2. Katarzyna Budnik & Michal Greszta & Michal Hulej & Marcin Kolasa & Karol Murawski & Michal Rot & Bartosz Rybaczyk & Magdalena Tarnicka, 2009. "The new macroeconometric model of the Polish economy," NBP Working Papers 62, Narodowy Bank Polski, Economic Research Department.
    3. Jared Laxton & Igor Ermolaev & Charles Freedman & Ondrej Kamenik & Michel Juillard & Douglas Laxton & Ioan Carabenciov & Dmitry Korshunov, 2008. "A Small Quarterly Multi-Country Projection Model," IMF Working Papers 08/279, International Monetary Fund.
    4. Leif Lybecker Eskesen, 2009. "Countering the Cycle—The Effectiveness of Fiscal Policy in Korea," IMF Working Papers 09/249, International Monetary Fund.
    5. Kolasa, Marcin, 2009. "Structural heterogeneity or asymmetric shocks? Poland and the euro area through the lens of a two-country DSGE model," Economic Modelling, Elsevier, vol. 26(6), pages 1245-1269, November.
    6. repec:ibn:ijefaa:v:9:y:2017:i:12:p:215-228 is not listed on IDEAS
    7. Michel Juillard & Charles Freedman & Dmitry Korshunov & Douglas Laxton & Ondrej Kamenik & Ioan Carabenciov & Igor Ermolaev & Jared Laxton, 2008. "A Small Quarterly Multi-Country Projection Model with Financial-Real Linkages and Oil Prices," IMF Working Papers 08/280, International Monetary Fund.
    8. Leif Lybecker Eskesen, 2009. "The Role for Counter-Cyclical Fiscal Policy in Singapore," IMF Working Papers 09/8, International Monetary Fund.
    9. Igor Ermolaev & Michel Juillard & Ioan Carabenciov & Charles Freedman & Douglas Laxton & Ondrej Kamenik & Dmitry Korshunov, 2008. "A Small Quarterly Projection Model of the US Economy," IMF Working Papers 08/278, International Monetary Fund.

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    Keywords

    Economic models; Fiscal policy; Monetary policy; Model construction; open-economy macroeconomics; international policy transmission; monetary and fiscal policies; monetary fund; inflation;

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