An estimated new Keynesian dynamic stochastic general equilibrium model of the Euro area

Marco Ratto (), Roeger W., in’t Veld J. and Riccardo Girardi
Additional contact information
Roeger W.: European Commission - DG Economic & Financial Affairs
in’t Veld J.: European Commission - DG Economic & Financial Affairs

Macroeconomics from EconWPA

Abstract: In recent years a new consensus has emerged in macroeconomics in general and in model building in particular, the so called New Keynesian Paradigm (NKM). This paper applies Bayesian estimation techniques to a time series data set of the euro area and presents estimates of a DSGE model. The purpose of this paper is not to estimate the current version of the QUEST model directly with these methods but rather to estimate a prototype new generation New-Keynesian DSGE model. This model can then serve as a benchmark for an estimation of a QUEST specification. In fact in some dimensions the QUEST model may need to be adjusted to come closer to a DSGE model.

Keywords: Bayesian Analysis; General Equilibrium Models; SDGE; Estimation (search for similar items in EconPapers)
JEL-codes: E22 C11 D58 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge, nep-eec and nep-mac
Date: Written 2005-03-03
Note: Type of Document - pdf; pages: 46
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