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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 ,
STEFAN LASÉEN ,
JESPER LINDÉ  and
MATTIAS VILLANI
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.
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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.

Keywords

Open EconomyClosed EconomyDSGE ModelBayesian Inference
Type
ARTICLES
Information
Macroeconomic Dynamics , Volume 12 , Supplement S1: Dynamic Macroeconomic Theory , April 2008 , pp. 2 - 19
Copyright
Copyright © Cambridge University Press 2008

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