EconStor >
Max-Planck-Institut für Ökonomik, Jena >
Jena Economic Research Papers, MPI für Ökonomik >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/56919
  
Title:Which parameters drive approximation inaccuracies? PDF Logo
Authors:Sienknecht, Sebastian
Issue Date:2010
Series/Report no.:Jena economic research papers 2010,093
Abstract:This paper identifies parameters responsible for welfare reversals when the basic New Keynesian model is approximated. In our setting, a reversal occurs when the Ramsey policy under timeless perspective commitment ceases to be dominant against the Taylor rule after approximating the model. We find that the parameters involved are the degree of persistence in the autoregressive shock process and the labor elasticity of real output.
Subjects:optimal monetary policy
approximations
welfare analysis
timeless perspective
JEL:E30
E52
E61
Document Type:Working Paper
Appears in Collections:Jena Economic Research Papers, MPI für Ökonomik

Files in This Item:
File Description SizeFormat
642325413.pdf396.88 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/56919

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.