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