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EMPIRICAL PROPERTIES OF CLOSED- AND OPEN-ECONOMY DSGE MODELS OF THE EURO AREA

Published online by Cambridge University Press:  01 April 2008

MALIN ADOLFSON*
Affiliation:
Sveriges Riksbank
STEFAN LASÉEN
Affiliation:
Sveriges Riksbank
JESPER LINDÉ
Affiliation:
Sveriges Riksbank and CEPR
MATTIAS VILLANI
Affiliation:
Sveriges Riksbank and Stockholm University
*
Address correspondence to: Malin Adolfson, Research Department, Sveriges Riksbank, SE-103 37 Stockholm, Sweden; e-mail: malin.adolfson@riksbank.se.

Abstract

In this paper, we compare the empirical properties of closed- and open-economy DSGE models estimated on Euro area data. The comparison is made along several dimensions; we examine the models in terms of their marginal likelihoods, forecasting performance, variance decompositions, and their transmission mechanisms of monetary policy.

Type
ARTICLES
Copyright
Copyright © Cambridge University Press 2008

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References

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EMPIRICAL PROPERTIES OF CLOSED- AND OPEN-ECONOMY DSGE MODELS OF THE EURO AREA
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