Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/65765
Authors: 
Vo Phuong Mai Le
Meenagh, David
Meenagh, David
Minford, Patrick
Wickens, Michael
Year of Publication: 
2009
Series/Report no.: 
Cardiff Economics Working Papers E2009/3
Abstract: 
We examine a two country model of the EU and the US. Each has a small sector of the labour and product markets in which there is wage/price rigidity, but otherwise enjoys flexible wages and prices with a one quarter information lag. Using a VAR to represent the data, we find the model as a whole is rejected. However it is accepted for real variables, output and the real exchange rate, suggesting mis-specification lies in monetary relationships. The model highlights a lack of spillovers between the US and the EU.
Subjects: 
Bootstrap
Open economy model
DSGE
VAR
New Keynesian
New Classical
indirect inference
Wald statistic
JEL: 
C12
C32
C52
E1
Document Type: 
Working Paper

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