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DSGE Modeling at the Fund: Applications and Further Developments
Author: Mr. Dennis P Botman, David Rose, Mr. Douglas Laxton, and Mr. Philippe D Karam
Series:
IMF Working Papers
Volume/Issue:
Volume 2007: Issue 200
Language:
English
Publication Date:
01 Aug 2007
DOI:
https://doi.org/10.5089/9781451867640.001
ISBN:
9781451867640
ISSN:
1018-5941
Pages:
41
Keywords:
WP; labor market; crowding out; open economy; aggregate demand; personal income; product market
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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Researchers in policymaking institutions have expended significant effort to develop a new generation of macro models with more rigorous microfoundations. This paper provides a summary of the applications of two of these models. The Global Economy Model is a quarterly model that features a large assortment of nominal and real rigidities, which are necessary to create plausible short-run dynamics. However, because this model is based on a representative-agent paradigm, its Ricardian features make it unsuitable to study many fiscal policy issues. The Global Fiscal Model, which is an annual model that uses an overlappinggenerations structure, has been designed to analyze the longer-term consequences of alternative fiscal policies.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund