The Portuguese post-2008 period: A narrative from an estimated DSGE model
José Maria and
Paulo Júlio
Working Papers from Banco de Portugal, Economics and Research Department
Abstract:
We present a medium scale small-open DSGE model for an euro-area economy that encompasses a financial accelerator mechanism and a well-developed fiscal block coupled to an overlapping generations scheme. This setup endogenously triggers myopia in households' decisions, breaking the traditional Ricardian equivalence in asset holders. We use Bayesian methods to estimate the model for the Portuguese economy and compute several byproducts of interest - namely historical and variance decompositions and key Bayesian impulse response functions. Finally, we carry out parameter stability tests.
JEL-codes: C11 C13 E20 E32 (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-dge and nep-mac
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Citations: View citations in EconPapers (2)
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Persistent link: https://EconPapers.repec.org/RePEc:ptu:wpaper:w201715
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