Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/82415
Authors: 
Adolfson, Malin
Laséen, Stefan
Lindé, Jesper
Villani, Mattias
Year of Publication: 
2005
Series/Report no.: 
Sveriges Riksbank Working Paper Series 179
Abstract: 
In this paper we develop a dynamic stochastic general equilibrium (DSGE) model for an open economy, and estimate it on Euro area data using Bayesian estimation techniques. The model incorporates several open economy features, as well as a number of nominal and real frictions that have proven to be important for the empirical fit of closed economy models. The paper offers: i) a theoretical development of the standard DSGE model into an open economy setting, ii) Bayesian estimation of the model, including assesments of the relative importance of various shocks and frictions for explaining the dynamic development of an open economy, and iii) an evaluation of the model's empirical properties using standard validation methods.
Subjects: 
DSGE model
Open economy
Monetary Policy
Bayesian Inference
Business cycle
JEL: 
C11
E40
E47
E52
Document Type: 
Working Paper

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