A Long Run Structural Macroeconometric Model for Germany

Pu Chen, Elena Schneider and Joachim Frohn

No 2007-47, Economics Discussion Papers from Kiel Institute for the World Economy (IfW Kiel)

Abstract: The objective of this paper is to apply the method developed in Garratt, Lee, Pesaran, and Shin (2000) to build a structural model for Germany with a transparent and theoretically coherent foundation. The modelling strategy consists of a set of long-run structural relationships suggested by economic theory and an otherwise unrestricted VAR model. It turns out that we can rebuild the structure of the model in Garratt, Lee, Pesaran, and Shin (2003b) for German data. Five long run relations : PPP, UIP, production function, trade balance, and real money balance characterize the equilibrium state of Germany as an open economy in our structural model.

Keywords: Long-Run Structural VAR; Macroeconomic Modelling; A structural Model for Germany; Oil Price Shock (search for similar items in EconPapers)
JEL-codes: C32 E24 (search for similar items in EconPapers)
Date: 2007
New Economics Papers: this item is included in nep-eec and nep-mac
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwedp:6174

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