Economics at your fingertips  

International Policy Coordination in a World with Model Uncertainty

Atish Ghosh () and Paul Masson ()

IMF Staff Papers, 1988, vol. 35, issue 2, 230-258

Abstract: The design and desirability of rules for the international coordination of macroeconomic policies in a world characterized by model uncertainty are considered. The presence of model uncertainty provides additional incentive to coordinate policies, provided that policymakers recognize that they cannot know the true model. To quantify the benefits from coordination, confidence regions are specified for parameters in MINIMOD; policymakers in the United States and the rest of the world are assumed to use these ranges as subjective probability priors. It is shown that the expected value of gains from coordination of policies may be large, despite substantial parameter uncertainty.

Date: 1988
References: Add references at CitEc
Citations: View citations in EconPapers (9) Track citations by RSS feed

Downloads: (external link) main text (application/pdf)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/41308/PS2

Access Statistics for this article

More articles in IMF Staff Papers from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla ().

Page updated 2019-11-23
Handle: RePEc:pal:imfstp:v:35:y:1988:i:2:p:230-258