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DSGE Modeling at the Fund :, Applications and Further Developments, Dennis Botman, David Rose, Douglas Laxton, Philippe Karam

Researchers in policymaking institutions have expended significant effort to develop a new generation of macro models with more rigorous microfoundations. This paper provides a summary of the applications of two of these models. The Global Economy Model is a quarterly model that features a large assortment of nominal and real rigidities, which are necessary to create plausible short-run dynamics. However, because this model is based on a representative-agent paradigm, its Ricardian features make it unsuitable to study many fiscal policy issues. The Global Fiscal Model, which is an annual model that uses an overlappinggenerations structure, has been designed to analyze the longer-term consequences of alternative fiscal policies
Table Of Contents
Contents; I. Introduction; II. The Global Economy Model (GEM): Structure and Applications; A. Parameterization of GEM; B. Applications; III. The Global Fiscal Model (GFM); A. Long-Term Crowding Out Effects of Government Debt; B. Fiscal Consolidation and the Current Account-the United States; C. Tax Distortions and Tax Reform; D. The Effects of Privatizing Retirement Saving; E. Reducing Taxes Now or in the Future; F. Fiscal Adjustment in the U.K. and Japan; IV. Concluding Remarks; Tables; 1. GEM: Estimates of the Long-Run Effects of More Competition-Friendly Policies in the Euro Area
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (43 p.)
Specific Material Designation
Form Of Item

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