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DSGE Modelling for the UK Economy 1974-2017

Pilbeam, K. ORCID: 0000-0002-5609-8620, Asteriou, D. and Listios, I. (2020). DSGE Modelling for the UK Economy 1974-2017. Bulletin of Economic Research,

Abstract

We build four different dynamic stochastic general equilibrium (DSGE) models for a small open economy reflecting both neoclassical and Keynesian specifications. A DSGE model with full price and wage flexibility is initially constructed and then modified through nominal wage and price rigidities. The ability of the models to replicate important features of the business cycle activity in the UK is explored through statistical and econometric analysis. Evidence suggests that a monetary shock under the Taylor model with price stickiness can replicate a significant portion of the business cycle activity in the UK economy.

Publication Type: Article
Additional Information: This is the peer reviewed version of the following article: Pilbeam, K. , Asteriou, D. and Listios, I. (2020). DSGE Modelling for the UK Economy 1974-2017. Bulletin of Economic Research, which is to be published in final form at http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1467-8586. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions.
Publisher Keywords: Small open economy, DSGE, wage rigidities, price rigidities, monetary-fiscal-technology shocks, simulated business cycles, long run dynamics, short run dynamics
Subjects: D History General and Old World > DA Great Britain
H Social Sciences > HB Economic Theory
H Social Sciences > HC Economic History and Conditions
J Political Science > JN Political institutions (Europe) > JN101 Great Britain
Departments: School of Arts & Social Sciences > Economics
Date Deposited: 20 May 2020 07:19
URI: https://openaccess.city.ac.uk/id/eprint/24199
[img] Text - Accepted Version
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