Using estimated models to assess nominal and real rigidities in the United Kingdom

Gunes Kamber and Stephen Millard

No DP2010/05, Reserve Bank of New Zealand Discussion Paper Series from Reserve Bank of New Zealand

Abstract: This paper aims to contribute to our understanding of inflation dynamics in the United Kingdom by estimating two dynamic stochastic general equilibrium models and assessing the role of nominal and real rigidities within them. We first obtain an empirical representation of the monetary transmission mechanism in the United Kingdom and then estimate the models by minimising the difference between this representation and its model equivalents. We find that both models can explain the data reasonably well without relying on undue amounts of price and wage stickiness.

JEL-codes: C23 D10 R20 (search for similar items in EconPapers)
Pages: 42 p
Date: 2010-08
New Economics Papers: this item is included in nep-cba, nep-dge, nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Related works:
Journal Article: Using Estimated Models to Assess Nominal and Real Rigidities in the United Kingdom (2012)
Working Paper: Using estimated models to assess nominal and real rigidities in the United Kingdom (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:nzb:nzbdps:2010/05

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