A Long Run Structural Macroeconometric Model for Germany

20 Pages Posted: 29 Nov 2010

See all articles by Elena Schneider

Elena Schneider

University of Bielefeld - Faculty of Economics

Pu Chen

Bielefeld University - Department of Business Administration and Economics

Joachim Frohn

affiliation not provided to SSRN

Date Written: 2007

Abstract

The objective of this paper is to apply the method developed in Garratt, Lee, Pesaran, and Shin (2000) to build a structural model for Germany with a transparent and theoretically coherent foundation. The modelling strategy consists of a set of long-run structural relationships suggested by economic theory and an otherwise unrestricted VAR model. It turns out that we can rebuild the structure of the model in Garratt, Lee, Pesaran, and Shin (2003b) for German data. Five long run relations : PPP, UIP, production function, trade balance, and real money balance characterize the equilibrium state of Germany as an open economy in our structural model.

Keywords: Long-Run Structural VAR, Macroeconomic Modelling, A structural Model for Germany, Oil Price Shock

JEL Classification: C32, E24

Suggested Citation

Schneider, Elena and Chen, Pu and Frohn, Joachim, A Long Run Structural Macroeconometric Model for Germany (2007). Economics Discussion Paper No. 2007-47, Available at SSRN: https://ssrn.com/abstract=1716671 or http://dx.doi.org/10.2139/ssrn.1716671

Elena Schneider (Contact Author)

University of Bielefeld - Faculty of Economics ( email )

Universitätsstraße 25
Bielefeld, NRW 33613
Germany

Pu Chen

Bielefeld University - Department of Business Administration and Economics ( email )

P.O. Box 100131
D-33501 Bielefeld, NRW 33501
Germany

Joachim Frohn

affiliation not provided to SSRN

No Address Available

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