Using estimated models to assess nominal and real rigidities in the United Kingdom

Gunes Kamber and Stephen Millard

No 396, Bank of England working papers from Bank of England

Abstract: This paper aims to contribute to our understanding of inflation dynamics in the United Kingdom by estimating two dynamic stochastic general equilibrium models and assessing the role of nominal and real rigidities within them. We first obtain an empirical representation of the monetary transmission mechanism in the United Kingdom and then estimate the models by minimising the difference between this representation and its model equivalents. We find that both models can explain the data reasonably well without relying on undue amounts of price and wage stickiness.

Keywords: Minimum distance estimation; DSGE models; Nominal and real rigidities (search for similar items in EconPapers)
JEL-codes: E31 E52 (search for similar items in EconPapers)
Pages: 47 pages
Date: 2010-07-27
New Economics Papers: this item is included in nep-cba, nep-dge, nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Related works:
Journal Article: Using Estimated Models to Assess Nominal and Real Rigidities in the United Kingdom (2012)
Working Paper: Using estimated models to assess nominal and real rigidities in the United Kingdom (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:boe:boeewp:0396

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