BEMOD: A DSGE Model for the Spanish Economy and the Rest of the Euro Area
University of Valencia - Department of Economics
Bank of Spain
Oficina Econommica de Presidencia del Gobierno
December 4, 2006
Banco de Espana Research Paper No. WP-0631
In this paper we present the theoretical foundations and the simulation results obtained with a new dynamic general equilibrium model developed at the Banco de España for the Spanish economy and the rest of Euro area. The model is designed to help in simulating the effect of alternative shocks on the main aggregate variables. The main contributions of this work from a theoretical perspective are the modelling of a monetary union composed of two regions, the inclusion of housing as a durable good with its own sector of production and the degree and detail of the disaggregation considered for each country in the model, which replicates the Quarterly National Accounts. On the empirical side, the main contribution is the detailed calibration of the most important ratios of the Spanish and rest of the Euro area economies.
Number of Pages in PDF File: 97
Keywords: SDGE model, open economy, simulation, shocks, macroeconomic policies
JEL Classification: E32, E50, F41working papers series
Date posted: December 5, 2006
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