Arbeitspapier
Two orthogonal continents: Testing a two-country DSGE model of the US and the EU using indirect inference
We examine a two country model of the EU and the US. Each has a small sector of the labour and product markets in which there is wage/price rigidity, but otherwise enjoys flexible wages and prices with a one quarter information lag. Using a VAR to represent the data, we find the model as a whole is rejected. However it is accepted for real variables, output and the real exchange rate, suggesting mis-specification lies in monetary relationships. The model highlights a lack of spillovers between the US and the EU.
- Language
-
Englisch
- Bibliographic citation
-
Series: Cardiff Economics Working Papers ; No. E2009/3
- Classification
-
Wirtschaft
Hypothesis Testing: General
Multiple or Simultaneous Equation Models: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
Model Evaluation, Validation, and Selection
- Subject
-
Bootstrap
Open economy model
DSGE
VAR
New Keynesian
New Classical
indirect inference
Wald statistic
Bootstrap-Verfahren
Offene Volkswirtschaft
Dynamisches Gleichgewicht
VAR-Modell
Neukeynesianische Makroökonomik
Neue klassische Makroökonomik
Theorie
EU-Staaten
USA
- Event
-
Geistige Schöpfung
- (who)
-
Vo Phuong Mai Le
Meenagh, David
Meenagh, David
Minford, Patrick
Wickens, Michael
- Event
-
Veröffentlichung
- (who)
-
Cardiff University, Cardiff Business School
- (where)
-
Cardiff
- (when)
-
2009
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Vo Phuong Mai Le
- Meenagh, David
- Minford, Patrick
- Wickens, Michael
- Cardiff University, Cardiff Business School
Time of origin
- 2009
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