SOME NOTES ON PROBLEMATIC ISSUES IN DSGE MODELS

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216224%3A14560%2F16%3A00091356" target="_blank" >RIV/00216224:14560/16:00091356 - isvavai.cz</a>

Výsledek na webu

<a href="http://dx.doi.org/10.2298/EKA1610079S" target="_blank" >http://dx.doi.org/10.2298/EKA1610079S</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.2298/EKA1610079S" target="_blank" >10.2298/EKA1610079S</a>

Jazyk výsledku

angličtina

Název v původním jazyce

SOME NOTES ON PROBLEMATIC ISSUES IN DSGE MODELS

Popis výsledku v původním jazyce

We review some of the problematic issues in DSGE models, which are currently much discussed in the economics profession. All of these issues are concerned with the DSGE models’ (in)ability to match aspects of macroeconomic variables’ observed behaviour. The optimizing agents framework implies that Ricardian equivalence typically holds, which is clearly at odds with the empirical evidence. A distinguishing feature of DSGE models is the assumption that structural parameters are invariant to policy changes. We argue that not all of them can be considered independent from economic policy. It is typical for DSGE models that agents form rational expectations, which can be considered unrealistic. The typical procedure for estimating a DSGE model is to use revised data. As some empirical studies suggest, a model’s behaviour may be different if real-time data are considered. It is also usually assumed that the monetary authority uses the interest rate as a tool of monetary policy.

Název v anglickém jazyce

SOME NOTES ON PROBLEMATIC ISSUES IN DSGE MODELS

Popis výsledku anglicky

We review some of the problematic issues in DSGE models, which are currently much discussed in the economics profession. All of these issues are concerned with the DSGE models’ (in)ability to match aspects of macroeconomic variables’ observed behaviour. The optimizing agents framework implies that Ricardian equivalence typically holds, which is clearly at odds with the empirical evidence. A distinguishing feature of DSGE models is the assumption that structural parameters are invariant to policy changes. We argue that not all of them can be considered independent from economic policy. It is typical for DSGE models that agents form rational expectations, which can be considered unrealistic. The typical procedure for estimating a DSGE model is to use revised data. As some empirical studies suggest, a model’s behaviour may be different if real-time data are considered. It is also usually assumed that the monetary authority uses the interest rate as a tool of monetary policy.

Druh

J_x - Nezařazeno - Článek v odborném periodiku (Jimp, Jsc a Jost)

CEP obor

AH - Ekonomie

OECD FORD obor

—

Projekt

—

Návaznosti

S - Specificky vyzkum na vysokych skolach

Rok uplatnění

2016

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

Economic Annals

ISSN

0013-3264

e-ISSN

—

Svazek periodika

LXI

Číslo periodika v rámci svazku

210

Stát vydavatele periodika

RS - Srbská republika

Počet stran výsledku

22

Strana od-do

79-100

Kód UT WoS článku

—

EID výsledku v databázi Scopus

2-s2.0-85002501604