Taking Multi-Sector Dynamic General Equilibrium Models to the Data

We estimate and compare two models, the Generalized Taylor Economy (GTE) and the Multiple Calvo model (MC); that have been built to model the distributions of contract lengths observed in the data. We compare the performances of these models to those of the standard models such as the Calvo and its popular variant, using the ad hoc device of indexation. The estimations are made with Bayesian techniques for the US data. The results indicate that the data strongly favour the GTE.

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Year of publication:	2011
Authors:	Dixon, Huw ; Kara, Engin
Publisher:	Istanbul : Koç University-TÜSİAD Economic Research Forum (ERF)
Subject:	Geldpolitik \| Dynamische Wirtschaftstheorie \| Modellierung \| Bayes-Statistik \| Schätzung \| USA \| DSGE models \| Calvo \| Taylor \| price-setting

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Series:	Working Paper ; 1125
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	669698202 [GVK] hdl:10419/108573 [Handle] RePEc:koc:wpaper:1125 [RePEc]
Classification:	E32 - Business Fluctuations; Cycles ; E52 - Monetary Policy (Targets, Instruments, and Effects) ; E58 - Central Banks and Their Policies
Source:	EconStor

Persistent link: https://www.econbiz.de/10010500190