Federal Reserve Bank of St. Louis
An estimated DSGE model for the United Kingdom
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.
Cite this item
Riccardo DiCecio & Edward Nelson, An estimated DSGE model for the United Kingdom, Federal Reserve Bank of St. Louis, Working Papers 2007-006, 2007.
Keywords: Equilibrium (Economics) - Mathematical models ; Economic policy - Great Britain
This item with handle RePEc:fip:fedlwp:2007-006
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