An Estimated Dynamic Stochastic General Equilibrium Model of Taiwanese Economy

Wing Leong Teo

No 334, Computing in Economics and Finance 2006 from Society for Computational Economics

Abstract: In this paper, I estimate an open economy DSGE model for the Taiwanese economy. The model features multiple sources of real and nominal rigidities, including price and wage stickiness, investment and bond adjustment costs, as well as incomplete pass-through of exchange rates. Contrary to the usual practice in the literature, monetary policy is modeled as a money supply rule instead of an interest rate rule, to be consistent with the policy regime in Taiwan. The model is estimated using Bayesian techniques. The estimated model is used to characterize monetary policy in Taiwan and assess relative importance of various shocks and frictions in Taiwanese economy

Keywords: DSGE model; Bayesian Structural Estimation; Monetary Policy; Business Cycle (search for similar items in EconPapers)
JEL-codes: E4 F4 (search for similar items in EconPapers)
Date: 2006-07-04
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Citations: View citations in EconPapers (3)

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Related works:
Journal Article: ESTIMATED DYNAMIC STOCHASTIC GENERAL EQUILIBRIUM MODEL OF THE TAIWANESE ECONOMY (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:sce:scecfa:334

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