“NONAME”: A new quarterly model for Belgium

The new quarterly model for Belgium built at the National Bank of Belgium can provide quantitative input into the policy analysis and projection processes within a framework that has explicit micro-foundations and expectations. The intertemporal optimisation of households and firms is subject to pol...

Full description

Saved in:
Bibliographic Details
Published in:Economic modelling 2008, Vol.25 (1), p.118-127
Main Authors: Jeanfils, Philippe, Burggraeve, Koen
Format: Article
Language:English
Subjects:
Adjustment costs
Belgium
Business cycles
CES production function
Econometric modelling
Econometric models
Economic forecasts
Economic models
Economic policy
Elasticity
Macroeconomics
Polynomial adjustment costs
Pricing-to-market
Production functions
Simulation
Studies
Wage bargaining
Wage negotiations
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:The new quarterly model for Belgium built at the National Bank of Belgium can provide quantitative input into the policy analysis and projection processes within a framework that has explicit micro-foundations and expectations. The intertemporal optimisation of households and firms is subject to polynomial adjustment costs. Other characteristics are: pricing-to-market, flexible mark-ups and incomplete pass-through, a CES production function with an elasticity of substitution below one, time-dependent wage contracting à la Dotsey, King and Wollman and Polynomial Adjustment Costs as in FRB-US. Most of the equations taken individually have acceptable statistical properties and diagnostic simulations suggest that the impulse responses to exogenous shocks are reasonable. Simulations can be conducted under rational expectations as well as under alternative expectations formations.
ISSN:0264-9993
1873-6122
DOI:10.1016/j.econmod.2007.05.004