Documentation of the Research and Statistics Divisions Estimated DSGE Model of the U.S. Economy: 2006 Version

64 Pages Posted: 5 Dec 2007

See all articles by Rochelle M. Edge

Rochelle M. Edge

Monetary Affairs Division at the Board of Governors of the Federal Reserve System

Michael T. Kiley

Board of Governors of the Federal Reserve System

Jean-Philippe Laforte

Board of Governors of the Federal Reserve System

Date Written: September 18, 2007

Abstract

This paper provides documentation for the large-scale estimated DSGE model of the U.S. economy used in Edge, Kiley, and Laforte (2007). The model represents part of an ongoing research project (the Federal Reserve Board's Estimated, Dynamic, Optimization-based - FRB/EDO - model project) in the Macroeconomic and Quantitative Studies section of the Federal Reserve Board aimed at developing a DSGE model that can be used to address practical policy questions and the model documented here is the version that was current at the end of 2006. The paper discusses the model's specification, estimated parameters, and key properties.

Keywords: two-sector growth model, sticky-prices, sticky-wages, habit-persistence, investment adjustment costs, variable utilization, Bayesian estimation

JEL Classification: C51, E10, E20, E32, O41

Suggested Citation

Edge, Rochelle M. and Kiley, Michael T. and Laforte, Jean-Philippe, Documentation of the Research and Statistics Divisions Estimated DSGE Model of the U.S. Economy: 2006 Version (September 18, 2007). FEDS Working Paper No. 2007-53. Available at SSRN: https://ssrn.com/abstract=1038102 or http://dx.doi.org/10.2139/ssrn.1038102

Rochelle M. Edge (Contact Author)

Monetary Affairs Division at the Board of Governors of the Federal Reserve System ( email )

20th and C Streets, NW
Washington, DC 20551
United States
(202) 452 2339 (Phone)
(202) 736-5638 (Fax)

Michael T. Kiley

Board of Governors of the Federal Reserve System ( email )

20th and C Streets, NW
Washington, DC 20551
United States
202-452-2448 (Phone)
202-452-5296 (Fax)

Jean-Philippe Laforte

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

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