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An estimated new Keynesian dynamic stochastic general equilibrium model of the Euro area - Marco Ratto, Werner Röger, Jan in’t Veld and Riccardo Girardi

Author(s): Marco Ratto, Werner Röger, Jan in’t Veld and Riccardo Girardi (Directorate General for Economic and Financial Affairs)

An estimated new Keynesian dynamic stochastic general equilibrium model of the Euro area - Marco Ratto, Werner Röger, Jan in’t Veld and Riccardo Girardi pdf (2 MB) Choose translations of the previous link 

In recent years a new consensus has emerged in macroeconomics in general and in model building in particular, the so called New Keynesian Paradigm (NKM).

This paper applies Bayesian estimation techniques to a time series data set of the euro area and presents estimates of a DSGE model. The purpose of this paper is not to estimate the current version of the QUEST model directly with these methods but rather to estimate a prototype new generation New-Keynesian DSGE model. This model can then serve as a benchmark for an estimation of a QUEST specification. In fact in some dimensions the QUEST model may need to be adjusted to come closer to a DSGE model.

(European Economy. Economic Papers 220. January 2005. Brussels. 45pp. Tab. free.)

KC-AI-04-220-EN-C (online)
ISBN 92-894-8119-6 (online)
ISSN 1725-3187 (online)

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