Cardiff University | Prifysgol Caerdydd ORCA
Online Research @ Cardiff 
WelshClear Cookie - decide language by browser settings

Two orthogonal continents? Testing a two-country DSGE model of the US and the EU using indirect inference

Le, Vo Phuong Mai, Meenagh, David, Minford, Anthony Patrick Leslie and Wickens, Michael 2009. Two orthogonal continents? Testing a two-country DSGE model of the US and the EU using indirect inference. Open Economies Review 21 (1) , pp. 23-44. 10.1007/s11079-009-9141-9

Full text not available from this repository.

Abstract

We examine a two country model of the EU and the US. Each has a small sector of the labour and product markets in which there is wage/price rigidity, but otherwise enjoys flexible wages and prices with a one quarter information lag. Using a VAR to represent the data, we find the model as a whole is rejected. However it is accepted for real variables, output and the real exchange rate, suggesting mis-specification lies in monetary relationships. The model highlights a lack of spillovers between the US and the EU.

Item Type: Article
Date Type: Publication
Status: Published
Schools: Advanced Research Computing @ Cardiff (ARCCA)
Business (Including Economics)
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HA Statistics
H Social Sciences > HB Economic Theory
H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
H Social Sciences > HG Finance
J Political Science > JK Political institutions (United States)
J Political Science > JN Political institutions (Europe)
Uncontrolled Keywords: Bootstrap ; Open economy model ; DSGE ; VAR ; New Keynesian ; New Classical ; Indirect inference ; Wald statistic
Publisher: Springer
ISSN: 0923-7992
Last Modified: 07 Nov 2017 02:33
URI: http://orca.cf.ac.uk/id/eprint/22161

Citation Data

Cited 17 times in Google Scholar. View in Google Scholar

Cited 5 times in Scopus. View in Scopus. Powered By Scopus® Data

Actions (repository staff only)

Edit Item Edit Item