How to order
IMF Publications

Working Papers in full text
2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 All


Other research-related activities and publications of the IMF can be found at IMF Research

Free Email Notification

Receive emails when we post new items of interest to you.

Subscribe or Modify your profile



An Estimated Dynamic Stochastic General Equilibrium Model of the Jordanian Economy

Author/Editor: Beidas-Strom, Samya | Poghosyan, Tigran
Authorized for Distribution: February 1, 2011
Electronic Access: Free Full Text (PDF file size is 2,716KB)
Use the free Adobe Acrobat Reader to view this PDF file.
 
Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.

Summary: This paper presents and estimates a small open economy dynamic stochastic general-equilibrium model (DSGE) for the Jordanian economy. The model features nominal and real rigidities, imperfect competition and habit formation in the consumer’s utility function. Oil imports are explicitly modeled in the consumption basket and domestic production. Bayesian estimation methods are employed on quarterly Jordanian data. The model’s properties are described by impulse response analysis of identified structural shocks pertinent to the economy. These properties assess the effectiveness of the pegged exchange rate regime in minimizing inflation and output trade-offs. The estimates of the structural parameters fall within plausible ranges, and simulation results suggest that while the peg amplifies output, consumption and (price and wage) inflation volatility, it offers a relatively low risk premium.
 
Order a print copy
Series: Working Paper No. 11/28
Subject(s): Income | Monetary policy | Exchange rate depreciation | Exchange rate appreciation | Economic models | External shocks | Demand | Oil prices | Price adjustments | Wage policy | Consumption | Jordan
Author's keyword(s): DSGE; Bayesian Estimation; Jordan; Monetary and Exchange Rate Policy
 
English  
    Published:   February 1, 2011        
            Format:   Paper
    Stock No:   WPIEA2011028   Pages:   51
    Price:   US$18.00 (Academic Rate: US$18.00 )
       
     
Please address any questions about this title to publications@imf.org.