Working Paper

An estimated DSGE model for the United Kingdom


Abstract: 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.

Keywords: Equilibrium (Economics) - Mathematical models; Economic policy - Great Britain;

Status: Published in Federal Reserve Bank of St. Louis Review, July/August 2007, 89(4), pp. 215-31

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Bibliographic Information

Provider: Federal Reserve Bank of St. Louis

Part of Series: Working Papers

Publication Date: 2007

Number: 2007-006