Policy Analysis and Forecasting in the World Economy: A Panel Dynamic Stochastic General Equilibrium Approach

Author/Editor: Francis Vitek
Publication Date: December 19, 2013
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Summary: This paper develops a structural macroeconometric model of the world economy, disaggregated into thirty five national economies. This panel unobserved components model encompasses an approximate linear panel dynamic stochastic general equilibrium model featuring a monetary transmission mechanism, a fiscal transmission mechanism, and extensive macrofinancial linkages, both within and across economies. A variety of monetary policy analysis, fiscal policy analysis, spillover analysis, and forecasting applications of the estimated model are demonstrated, based on a Bayesian framework for conditioning on judgment.
Series: Working Paper No. 13/253
Subject(s): Monetary transmission mechanism | Spillovers | Monetary policy | Fiscal policy | Economic forecasting | Cross country analysis | Economic models

Publication Date: December 19, 2013
ISBN/ISSN: 9781484314609/1018-5941 Format: Paper
Stock No: WPIEA2013253 Pages: 89
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