The Global Multi-Country Model (GM): An Estimated DSGE Model for Euro Area Countries

Alice Albonico, Ludovic Calès, Roberta Cardani, Olga Croitorov, Fabio Di Dio (), Filippo Ferroni, Massimo Giovannini (), Stefan Hohberger, Beatrice Pataracchia, Filippo Maria Pericoli, Philipp Pfeiffer, Rafal Raciborski, Marco Ratto, Werner Roeger and Lukas Vogel

No 102, European Economy - Discussion Papers from Directorate General Economic and Financial Affairs (DG ECFIN), European Commission

Abstract: This paper introduces the Global Multi-country (GM) model, an estimated multi-country Dynamic Stochastic General Equilibrium (DSGE) model of the world economy. We present the model in 3-region configurations for Euro area (EA) countries that include an individual EA Member State, the rest of the EA (REA), and the rest of the world (RoW). We provide and compare estimates of this model structure for the four largest EA countries (Germany, France, Italy, and Spain). The novelty of the paper is the estimation of ex-ante identical country models on the basis of a unified information set, which allows for clean crosscountry comparison of parameter estimates and drivers of economic dynamics. The paper also provides an overview of applications of the GM model such as the structural interpretation of business cycle dynamics, the contribution to the European Commission’s economic forecast, the scenario analysis and policy counterfactuals.

JEL-codes: C51 E32 F41 F45 (search for similar items in EconPapers)
Pages: 76 pages
Date: 2019-07
New Economics Papers: this item is included in nep-dge, nep-eec, nep-mac and nep-opm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

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Related works:
Working Paper: The Global Multi-Country Model (GM): an Estimated DSGE Model for the Euro Area Countries (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:euf:dispap:102

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