An Estimated DSGE Model for the United Kingdom
Federal Reserve Bank of St. Louis - Research Division
Federal Reserve Bank of St. Louis - Research Division; Federal Reserve Board
We estimate the dynamic stochastic general equilibrium model of Christiano, Eichenbaum, and Evans (2005) on United Kingdom data. Our estimates suggest that price stickiness is a more important source of nominal rigidity in the U.K. than wage stickiness. Our estimates of parameters governing investment behavior are only well behaved when post-1979 observations are included, which reflects government policies until the late 1970s that obstructed the influence of market forces on investment.
Number of Pages in PDF File: 30
Keywords: United Kingdom economy, DSGE models, monetary policy regime
JEL Classification: E31, E32, E52working papers series
Date posted: March 1, 2007
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