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dc.contributor.authorMeenagh, Daviden_US
dc.contributor.authorMinford, Patricken_US
dc.contributor.authorWickens, Michaelen_US
dc.date.accessioned2010-02-24en_US
dc.date.accessioned2012-11-02T14:29:59Z-
dc.date.available2012-11-02T14:29:59Z-
dc.date.issued2008en_US
dc.identifier.urihttp://hdl.handle.net/10419/65840-
dc.description.abstractWe use the method of indirect inference, using the bootstrap, to test the Smets and Wouters model of the EU against a VAR auxiliary equation describing their data. We find that their model generates excessive variance compared with the data. But their model fits the dynamic facts quite well if the errors have the properties assumed by SW but scaled down. We compare a New Classical version of the model which also performs reasonably if error properties are chosen using New Classical priors (notably excluding shocks to preferences). Both versions have (different) difficulties fitting the data if the actual error properties are used. A model combining rigid and flexible-wage/price sectors, with a weight of around 5% on the rigid sector, does best in fitting the data.en_US
dc.language.isoengen_US
dc.publisherCardiff University, Cardiff Business School Cardiffen_US
dc.relation.ispartofseriesCardiff Economics Working Papers E2008/11en_US
dc.subject.jelC12en_US
dc.subject.jelC32en_US
dc.subject.ddc330en_US
dc.subject.keywordbootstrapen_US
dc.subject.keywordDSGE Modelen_US
dc.subject.keywordVAR modelen_US
dc.subject.keywordModel of EUen_US
dc.subject.keywordindirect inferenceen_US
dc.subject.keywordWald statisticen_US
dc.subject.stwInflationen_US
dc.subject.stwGesamtwirtschaftliche Produktionen_US
dc.subject.stwBootstrap-Verfahrenen_US
dc.subject.stwVAR-Modellen_US
dc.subject.stwDynamisches Gleichgewichten_US
dc.subject.stwKritiken_US
dc.subject.stwEU-Staatenen_US
dc.titleTesting a DSGE model of the EU using indirect inferenceen_US
dc.typeWorking Paperen_US
dc.identifier.ppn57427460Xen_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:Cardiff Economics Working Papers, Cardiff Business School, Cardiff University

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