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An estimated new Keynesian dynamic stochastic general equilibrium model of the Euro area - Marco Ratto, Werner Röger, Jan in’t Veld and Riccardo Girardi

Marco Ratto, Werner Röger, Jan in’t Veld and Riccardo Girardi (Directorate General for Economic and Financial Affairs)

An estimated new Keynesian dynamic stochastic general equilibrium model of the Euro area - Marco Ratto, Werner Röger, Jan in’t Veld and Riccardo Girardipdf(2 MB) Choose translations of the previous link 

In recent years a new consensus has emerged in macroeconomics in general and in model building in particular, the so called New Keynesian Paradigm (NKM).

This paper applies Bayesian estimation techniques to a time series data set of the euro area and presents estimates of a DSGE model. The purpose of this paper is not to estimate the current version of the QUEST model directly with these methods but rather to estimate a prototype new generation New-Keynesian DSGE model. This model can then serve as a benchmark for an estimation of a QUEST specification. In fact in some dimensions the QUEST model may need to be adjusted to come closer to a DSGE model.

(European Economy. Economic Papers. 220. January 2005. Brussels. 45pp. Tab. free.)

KC-AI-04-220-EN-C (online)
ISBN 92-894-8119-6 (online)
ISSN 1725-3187

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