| 1. |
- Adolfson, Malin, et al.
(author)
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Bayesian estimation of an open economy DSGE model with incomplete pass-through
- 2007
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In: Journal of International Economics. - : Elsevier BV. - 0022-1996 .- 1873-0353. ; 72:2, s. 481-511
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Journal article (peer-reviewed)abstract
- In this paper, we develop a dynamic stochastic general equilibrium (DSGE) model for an open economy, and estimate it on Euro area data using Bayesian estimation techniques. The model incorporates several open economy features, as well as a number of nominal and real frictions that have proven to be important for the empirical fit of closed economy models. The paper offers: i) a theoretical development of the standard DSGE model into an open economy setting, ii) Bayesian estimation of the model, including assessments of the relative importance of various shocks and frictions for explaining the dynamic development of an open economy, and iii) an evaluation of the model's empirical properties using standard validation methods.
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| 2. |
- Adolfson, Malin, et al.
(author)
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Empirical properties of closed- and open-economy DSGE models of the Euro area
- 2008
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In: Macroeconomic Dynamics. - 1365-1005 .- 1469-8056. ; 12, s. 2-19
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Journal article (peer-reviewed)abstract
- In this paper, we compare the empirical proper-ties 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.
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| 3. |
- Adolfson, Malin, et al.
(author)
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Monetary policy trade-offs in an estimated open-economy DSGE model
- 2014
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In: Journal of Economic Dynamics and Control. - : Elsevier BV. - 0165-1889 .- 1879-1743. ; 42, s. 33-49
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Journal article (peer-reviewed)abstract
- This paper studies the trade-offs between stabilizing CPI inflation and alternative measures of the output gap in Ramses, the Riksbank's estimated dynamic stochastic general equilibrium (DSGE) model of a small open economy. Our main finding is that the trade-off between stabilizing CPI inflation and the output gap strongly depends on which concept of potential output in the output gap between output and potential output is used in the loss function. If potential output is defined as a smooth trend this trade-off is much more pronounced compared to the case when potential output is defined as the output level that would prevail if prices and wages were flexible.
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| 4. |
- Adolfson, Malin, et al.
(author)
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Optimal Money Policy in an Operational Medium-Sized DSGE Model
- 2011
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In: Journal of Money, Credit and Banking. - : Wiley. - 0022-2879 .- 1538-4616. ; 43, s. 1287-1331
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Journal article (peer-reviewed)abstract
- We show how to construct optimal policy projections in Ramses, the Riksbank's open-economy medium-sized dynamic stochastic general equilibrium model for forecasting and policy analysis. Bayesian estimation of the parameters of the model indicates that they are relatively invariant to alternative policy assumptions and supports our view that the model parameters may be regarded as unaffected by the monetary policy specification. We discuss how monetary policy, and in particular the choice of output gap measure, affects the transmission of shocks. Finally, we use the model to assess the recent Great Recession in the world economy and how its impact on the economic development in Sweden depends on the conduct of monetary policy. This provides an illustration on how Rames incoporates large international spillover effects.
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| 5. |
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| 6. |
- Jordahl, Henrik, et al.
(author)
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Central bank conservatism and labor market reform
- 1999
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Reports (other academic/artistic)abstract
- How does central bank conservatism affect labor market reform? In this paper we examine the economic forces at work. An increase in conservatism triggers two opposite effects. It reduces the inflation bias of discretionary monetary policy and hence the be
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| 7. |
- Jordahl, Henrik, 1971-, et al.
(author)
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Central bank conservatism and labor market regulation
- 2005
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In: European Journal of Political Economy. - : Elsevier. - 0176-2680 .- 1873-5703. ; 21:2, s. 345-363
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Journal article (peer-reviewed)abstract
- How does central bank conservatism affect labor market regulation? In this paper, we examine the economic forces at work. An increase in conservatism triggers two opposite effects. It reduces the inflation bias of discretionary monetary policy and hence the cost of regulation. It also increases unemployment variability, making regulation more costly. In combination, the two effects produce a hump-shaped relation between conservatism and labor market regulation. To test this prediction, we use data for 19 OECD countries for the period 1980–1994. Our proxies for regulation are unemployment, different labor market institutions, and indices of labor market regulation. Conservatism is proxied by two common measures of central bank independence. We find support for the prediction of a hump-shaped relation between conservatism and labor market regulation.
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| 8. |
- Laséen, Stefan, et al.
(author)
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Anticipated Alternative Policy Rate Paths in Policy Simulations
- 2011
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In: The International Journal of Central Banking. - 1815-4654 .- 1815-7556. ; 7:3, s. 1-35
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Journal article (peer-reviewed)abstract
- This paper specifies a new convenient algorithm to construct policy projections conditional on alternative anticipated policy rate paths in linearized dynamic stochastic general equilibrium (DSGE) models, such as Ramses, the Riksbank's main DSGE model. Such projections with anticipated policy rate paths correspond to situations where the central bank transparently announces that it, conditional on current information, plans to implement a particular policy rate path and where this announced plan for the policy rate is believed and then anticipated by the private sector. The main idea of the algorithm is to include among the predetermined variables (the "state" of the economy) the vector of non-zero means of future shocks to a given policy rule that is required to satisfy the given anticipated policy rate path.
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| 9. |
- Laséen, Stefan, et al.
(author)
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Capital adjustment patterns in Swedish manufacturing firms : what models do they suggest?
- 2001
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Reports (other academic/artistic)abstract
- In this paper we study the capital adjustment process in Swedish manufacturing firms and relate the empirical findings to standard models of firm behavior in the presence of impediments to capital adjustments. We find that (i) a model with irreversible capital goes a very long way in capturing the salient features of firm-level capital adjustment behavior. To see this, an integrated approach is necessary since different alternative models do well in certain comparative dimensions but not in others. (ii) The partial adjustment model generally fails to explain capital adjustment patterns. (iii) The capital accumulation process is a highly volatile and non-persistent process on the firm-level. (iv) Firms adjustment behavior is asymmetric in that they are more likely to tolerate excess capital than shortages of capital, and finally, (v) the estimated adjustment function implies that aggregate investment is relatively unresponsive to aggregate shocks in deep recessions as compared to the responsiveness in normal times.
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| 10. |
- Laséen, Stefan, et al.
(author)
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Central bank conservatism and labor market reform
- 1999
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Reports (other academic/artistic)abstract
- How does central bank conservatism affect labor market reform? In this paper we examine the economic forces at work. An increase in conservatism triggers two opposite effects. It reduces the inflation bias of discretionary monetary policy and hence the benefits of a reform. It also increases unemployment variability, which increases the precautionary benefits of a reform. In combination, the two effects produce a u-shaped relation between conservatism and labor market reform. An empirical investigation provides evidence consistent with this prediction.
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