An Estimated Dynamic Stochastic General Equilibrium Model of the Euro Area

# An Estimated Dynamic Stochastic General Equilibrium Model of the Euro Area > OpenAlex Metadata Hub · https://openalex.org/W3124765495 ## Bibliographic - **DOI:** 10.1162/154247603770383415 - **Year:** 2003 - **Citations:** 3574 - **Open Access:** No (closed) - **License:** — - **Source:** https://doi.org/10.1162/154247603770383415 ## Authors - Frank Smets - Raf Wouters ## Abstract This paper develops and estimates a dynamic stochastic general equilibrium (DSGE) model with sticky prices and wages for the euro area. The model incorporates various other features such as habit formation, costs of adjustment in capital accumulation and variable capacity utilization. It is estimated with Bayesian techniques using seven key macroeconomic variables: GDP, consumption, investment, prices, real wages, employment, and the nominal interest rate. The introduction of ten orthogonal structural shocks (including productivity, labor supply, investment, preference, cost-push, and monetary policy shocks) allows for an empirical investigation of the effects of such shocks and of their contribution to business cycle fluctuations in the euro area. Using the estimated model, we also analyze the output (real interest rate) gap, defined as the difference between the actual and model-based potential output (real interest rate). ## Keywords Economics, Dynamic stochastic general equilibrium, General equilibrium theory, Volume (thermodynamics), Mathematical economics, Econometrics, Keynesian economics, Macroeconomics, Monetary policy ## Concepts - Economics - Dynamic stochastic general equilibrium - General equilibrium theory - Volume (thermodynamics) - Mathematical economics - Econometrics - Keynesian economics - Macroeconomics - Monetary policy - Physics - Quantum mechanics --- *Metadata only — full text not imported unless Open Access license permits.*

Bài “An Estimated Dynamic Stochastic General Equilibrium Model of the Euro Area” được TradingBase chuyển thành Knowledge Product cho trader — không phải trang đọc abstract OpenAlex. Tóm lược học thuật (đã diễn giải): This paper develops and estimates a dynamic stochastic general equilibrium (DSGE) model with sticky prices and wages for the euro area. The model incorporates various other features such as habit formation, costs of adjustment in capital accumulation and variable capacity utilization. It is estimated with Bayesian techniques using seven key macroeconomic variables: GDP, consumption, investment, prices, real wages, employment, and the nominal interest rate. The introduction of ten orthogonal structural shocks (including productivity, labor supply, investment, preference, cost-push, and monetary policy shocks) allows for an empirical investigation of the effects of such shocks and of their contribution to business cycle fluctuations in the euro area. Using the estimated model, we also analyze the output (real interest rate) gap, defined as the difference between the actual and model-based … Phần Trading Insights bên dưới nối nghiên cứu với Forex, vàng, USD, lãi suất và risk regime — để bạn đưa vào journal và playbook. Metadata DOI/OA chỉ là rail tham chiếu; nội dung chính là summary, takeaways và ứng dụng thị trường do Content Factory sinh.