Inside PESSOA -A Detailed Description of the Model

Gabriela Castro (), José Maria and Paulo Júlio
Authors registered in the RePEc Author Service: Ricardo Mourinho Félix () and Vanda Almeida

Working Papers from Banco de Portugal, Economics and Research Department

Abstract: This article presents a detailed description of PESSOA - Portuguese Economy Structural Small Open Analytical model. PESSOA is a dynamic general equilibrium model that can be applied to any small economy integrated in a monetary union. The main theoretical reference behind its structure is Kumhof, Muir, Mursula, and Laxton (2010). The model features non-Ricardian characteristics, a multi-sectoral production structure, imperfect market competition, and a number of nominal, real, and financial rigidities. PESSOA has been calibrated to match Portuguese and euro area data and used to illustrate a number of key macroeconomic issues, ranging from the effects of structural reforms to alternative fiscal policy options.

JEL-codes: E62 F41 H62 (search for similar items in EconPapers)
Date: 2013
New Economics Papers: this item is included in nep-cmp and nep-eec
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

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Persistent link: https://EconPapers.repec.org/RePEc:ptu:wpaper:w201316

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