Modelo de Ciclos Reales para Colombia

A real business cycle model for Colombia

Juan Prada Sarmiento ()

MPRA Paper from University Library of Munich, Germany

Abstract: Colombian economy has the typical small-open economy cycle: smooth consumption, higher volatility in investment ; procyclical consumption, investment and imports; countercyclical trade balance. The objective of this paper is to identify the stylized facts and to replicate them quantitative and qualitatively through a simple dynamic stochastic general equilibrium model calibrated for Colombia. The model is used to assess the response of the economy to exogenous shocks in productivity, interest rates and fiscal policy. The standard RBC model is a good tool to replicate the stylized facts found for Colombia. However, it cannot replicate some facts about labour market, and underestimates the volatility of consumption and the relative volatility of investment with respect to GDP.

Keywords: Small open economy; real business cycle; Colombia (search for similar items in EconPapers)
JEL-codes: E13 E30 E32 (search for similar items in EconPapers)
Date: 2005-12-06
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:16286

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