Taking Multi-Sector Dynamic General Equilibrium Models to the Data

Huw Dixon and Engin Kara

Bristol Economics Discussion Papers from School of Economics, University of Bristol, UK

Abstract: We estimate and compare two models, the Generalized Taylor Economy (GTE) and the Multiple Calvo model (MC) that have been built to model the distributions of contract lengths observed in the data. We compare the performances of these models to those of the standard models such as the Calvo and its popular variant, using the ad hoc device of indexation. The estimations are made with Bayesian techniques for the US data. The results indicate that the data strongly favour the GTE.

Keywords: DSGE models; Calvo; Taylor; price-setting (search for similar items in EconPapers)
JEL-codes: E32 E52 E58 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2011-07
New Economics Papers: this item is included in nep-cba, nep-dge and nep-mac
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Related works:
Working Paper: Taking Multi-Sector Dynamic General Equilibrium Models to the Data (2012)
Working Paper: Taking Multi-Sector Dynamic General Equilibrium Models to the Data (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:bri:uobdis:11/621

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