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A Microfounded Sectoral Model for Open Economies

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  • Plasmans, J.E.J.

    (Tilburg University, Center For Economic Research)

  • Fornero, J.
  • Michalak, T.

Abstract

Numerical simulations of the two-country sectoral model are provided for a relatively large number of structural shocks as domestic and foreign productivity shocks in final tradables and non-tradables, money demand shocks and a shock in the exchange rate. Such a model is well suited for monetary policy analysis at the international level and risk analysis.

Suggested Citation

  • Plasmans, J.E.J. & Fornero, J. & Michalak, T., 2007. "A Microfounded Sectoral Model for Open Economies," Discussion Paper 2007-39, Tilburg University, Center for Economic Research.
  • Handle: RePEc:tiu:tiucen:0fa43989-a96a-4c17-86de-ec95be139e98
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    Cited by:

    1. Jorge A. Fornero, 2010. "Ricardian Equivalence Proposition in a NK DSGE Model for two Large Economies: The EU and the US," Working Papers Central Bank of Chile 563, Central Bank of Chile.
    2. repec:dau:papers:123456789/6913 is not listed on IDEAS

    More about this item

    Keywords

    New Keynesian open economy model; tradable and non-tradable sectors; final and intermediate goods; log-linearization;

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • P24 - Economic Systems - - Socialist Systems and Transition Economies - - - National Income, Product, and Expenditure; Money; Inflation

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