An estimated stochastic dynamic general equilibrium model of the euro area

This paper develops and estimates a stochastic dynamic general equilibrium model with sticky prices and wages for the euro area. The model incorporates various other features such as habit formation, costs of adjustment in capital accumulation and variable capacity utilization.

Saved in:
Bibliographic Details
Published in:Policy File 2002
Main Authors: Smet, Frank, Wouters, Raf
Format: Report
Language:English
Subjects:
Banking/Finance
Economic policy
European Central Bank
Online Access:Request full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:This paper develops and estimates a stochastic dynamic general equilibrium model with sticky prices and wages for the euro area. The model incorporates various other features such as habit formation, costs of adjustment in capital accumulation and variable capacity utilization.