Une valuation structurelle du ratio de sacrifice dans la zone euro

Jerome Coffinet, Julien Matheron and Céline Poilly (celine.poilly@univ-amu.fr)

Working papers from Banque de France

Abstract: In this paper, we seek to estimate the sacrifice ratio of the euro area using a small DSGE model where prices and wages are sticky. We estimate model's parameters so as to minimize the distance between VAR-based and model-based covariances of a set of variables. The estimated value of the sacrifice ratio reaches 1.30%. In a second step, we proceed to a set of counterfactual exercises in order to highlight the link between the sacrifice ratio and the degree of prices and wages stickiness. We obtain that a decrease of prices stickiness does not necessary result in a decrease of the sacrifice ratio. In addition, the sacrifice ratio rises with the degree of wage stickiness.

Keywords: Sacrifice ratio; Sticky prices and sticky wages; DSGE model. (search for similar items in EconPapers)
JEL-codes: C51 E31 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Une évaluation structurelle du ratio de sacrifice dans la zone euro (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:bfr:banfra:163

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