Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/153055
Authors: 
Welz, Peter
Year of Publication: 
2006
Series/Report no.: 
ECB Working Paper 621
Abstract: 
This paper analyses the empirical performance of a New Keynesian stickyprice model with delayed effects of monetary impulses on inflation and output for the German pre-EMU economy. The model is augmented with rule-ofthumb behaviour in consumption and price setting. Using recently developed Bayesian estimation techniques, endogenous persistence is found to play a dominant role in consumption whereas forward-looking behaviour is greater for inflation. The model’s dynamics following a monetary shock and a preference shock are comparable to those of an identified VAR model.
Subjects: 
Bayesian estimation
DSGE-Model
identified VAR
predetermined expectations
JEL: 
E43
E52
C51
Document Type: 
Working Paper

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