{
  "title": "An Estimated Dynamic Stochastic General Equilibrium Model of the Jordanian Economy",
  "publication": "IMF Working Papers, February 1, 2011",
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  "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.",
  "sections": [
    {
      "heading": "Model description",
      "content": "- Presents a small open economy dynamic stochastic general-equilibrium model (DSGE) for the Jordanian economy.\n- Model features:\n  - Nominal and real rigidities.\n  - Imperfect competition.\n  - Habit formation in the consumer’s utility function.\n  - Oil imports explicitly modeled in the consumption basket and domestic production."
    },
    {
      "heading": "Estimation and data",
      "content": "- Bayesian estimation methods are employed.\n- Frequency of data: quarterly Jordanian data.\n- Model properties are analyzed using impulse response analysis of identified structural shocks pertinent to the economy."
    },
    {
      "heading": "Key findings and simulation results",
      "content": "- Estimates of the structural parameters fall within plausible ranges.\n- Simulation results indicate:\n  - The pegged exchange rate regime amplifies output volatility.\n  - The pegged exchange rate regime amplifies consumption volatility.\n  - The pegged exchange rate regime amplifies (price and wage) inflation volatility.\n  - The pegged exchange rate regime offers a relatively low risk premium.\n- The model’s properties are used to assess the effectiveness of the pegged exchange rate regime in minimizing inflation and output trade-offs."
    },
    {
      "heading": "Subject areas and keywords",
      "content": "- Subject: Consumption, Inflation, Labor, Oil consumption, Oil prices\n- Keywords: exchange rate, interest rate, WP\n\n---\n\n Content in this bundle\n\n- wp1128\n  - wp1128 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp1128 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/an-estimated-dynamic-stochastic-general-equilibrium-model-of-the-jordanian-economy-24615"
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    "Authors: Tigran Poghosyan, Samya Beidas-Strom",
    "Published: February 1, 2011",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781455216758.001",
    "Presents a small open economy dynamic stochastic general-equilibrium model (DSGE) for the Jordanian economy.",
    "Model features:",
    "Bayesian estimation methods are employed.",
    "Frequency of data: quarterly Jordanian data.",
    "Model properties are analyzed using impulse response analysis of identified structural shocks pertinent to the economy.",
    "Estimates of the structural parameters fall within plausible ranges.",
    "Simulation results indicate:",
    "The model’s properties are used to assess the effectiveness of the pegged exchange rate regime in minimizing inflation and output trade-offs.",
    "Subject: Consumption, Inflation, Labor, Oil consumption, Oil prices",
    "Keywords: exchange rate, interest rate, WP",
    "**_wp1128**"
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