# Questions tagged [dsge]

DSGE - Dynamic Stochastic General Equilibrium models.

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### Real effect of monetary policy

In the article The State of New Keynesian Economics: A Partial Assessment, Gali says the following about the monetary policy in DSGE models: "Exogenous changes in monetary policy have nontrivial ...
• 437
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### MLE on Structural VAR / DSGE

I have a simple DSGE model that I wish to fit using data. The model is of the form: \begin{gather} y_t = -\lambda r_t + \theta a_t + \varepsilon_1 \\ \\ \pi_t = \pi_{t-1} + w y_t + \varepsilon_2 \\ \\ ...
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### DSGE Bayesian estimation - Sum of Squares equivalence

Say I have a DSGE that produces several observable outputs (e.g. GDP, inflation, interest rate), and I want to estimate this model using empirical data (in the form of a set of time series of the ...
• 91
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### Does julia's speed advantage over python make any difference for DSGE modeling?

When compared to Python the main selling point of Julia is its speed as it is often argued. However, from my own personal experience I never noticed any significant difference in speed between Julia ...
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68 views

### Bootstrapping standard errors in SMM estimation

I have estimated a number of key parameters in a model by the Simulated Method of Moments. So far, I have computed asymptotic standard errors (that rely on computing numerical derivatives, where we ...
1 vote
42 views

### Economic growth in a DSGE model, despite mean-zero shocks

The DSGEs I've seen have steady-states, and mean-zero shocks. Can these predict growth in GDP / capital etc? Is this possible despite them being equilibrium models, or do you have to completely change ...
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1 vote
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### IS equation in a DSGE: interpretation

I am solving a DSGE model and I derived the following expression for the IS equation: However, I have some problems interpreting this equation. How would you interpret it? is the domestic output is ...
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1 vote
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### Questions regarding DSGE model

Christiano,2017, abstract stated that Macroeconomic policy questions involve trade-offs between competing forces in the economy. The problem is how to assess the strength of those forces for the ...
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### Get empirical steady state moments for calibrating a DSGE model

I want to calibrate some parameters of my DSGE model so that in the steady state some variable ratios, that are present in data, are met. My question is, how do I get such ratios from time series ...
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### Separation rate

I want to refer to the paper Aggregate implications of indivisible labor, incomplete markets, and labor market frictions. In Footnote 9, there is a brief explanation of how the separation rate is ...
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1 vote
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### Why do investment adjustment and capital adjustment costs yield different dynamics?

Both the Business Cycle and DSGE literature find that Investment adjustment costs and capital adjustment costs give rise to different dynamics for investment, output, consumption etc. Investment ...
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### Deriving the New Keynesian Phillips Curve (NKPC)

I have a question regarding the NKPC. I would like to know if it is possible to derive the NKPC from a sticky prices model, without making assumptions regarding the production function firms face. I ...
491 views

### Ultra simple DSGE to implement

I want to create a DSGE model in Python. I want to build it myself to help me understand it (not just use a library) Can someone direct me to a very simple model which would be straightforward to ...
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1 vote
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### How to define the natural rate output

I'm following Woodford's Interest & Prices to derive the microfundations for a New Keynesian model with staggereed prices. I defined the utility function and disutility function (1.1 at page 144) ...
1 vote
93 views

### Basic New Keynesian model with flexible price

I would like to know what would be the response of variables in the Basic New Keynesian model but with flexible prices (ie not with Calvo pricing). For example I have troubles to see how having ...
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1 vote
22 views

### functional form for a consumption shock

In a DSGE model, how can I add a disturbance/shock in the consumption of households? For example given my utility function $$U(C,H) = \frac{C_t^{1-\theta}}{1-\theta} - \frac{B}{\eta} H_t^\eta,$$ ...
1 vote
66 views

### Search and Matching model with 2 agents?

I would like to know if you know any model with Search and matching framework (Mortenses-Pisarides style) with 2 types of workers (like Ricardian and rule of thumb consumers for exemple) ? I would ...
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52 views

### Is IS-LM still used in research or we learn it just to understand basic macro?

Since i had my "Introduction to advanced macroeconomics" and discovered DSGE i've been wondering if IS-LM is used in research, i know it was used in the 80's or so, but now?
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1 vote
61 views

### How can difference equations with an infinite summation be represented in matrix form?

I have derived the microeconomic foundations of a dsge model and I've obtained the IS and NKPC. I would like to represent them in matrix form to study the system. However the problem is that both ...
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### Questions about the future of macroeconomic modeling and the role of simultaneous equation systems

I started to study about macroeconomic modeling and I am interested in the following questions. I understand that there are no definite answers to these questions. But I am interested in the opinion ...
40 views

### DSGE model with agents that develop their skills

Are there DSGE models with agents with different skill levels (and according wage differences) who can develop or lose their skills and with employees with dynamic/changing skill levels and skill ...
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292 views

### Solving Euler Equation for standard DSGE Models

I am studying a rather standard DSGE Model with a standard Utility function $U = f(c_t, n_t, M_t)$ subject to a budget constraint. Now, tosolve the intertemporal optimization problem I have, or ...
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### Where to find series of capital-output ratio for the US?

While the capital-output ratio is widely used in Macroeconomics as a target in calibration, it is usually just set to be equal to 3, without specifying the data source nor the methodology used to ...
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35 views

### Percentage/proportion of published papers with DSGE models

I remember reading a few years back an article that showed an interesting graphic with the percentage/proportion of published papers with DSGE models across time. I've tried searching, but I get so ...