DSGE Model-Slovakia

Abstract

DSGE Slovakia is a medium size New Keynesian open economy model designed to simulate dynamic behavior of Slovak economy. It consists of about 50 equations and contains all important macroeconomic variables including real GDP and all its main components- consumption, investment, government expenditures, import and export then factors of production – labor, capital and oil and also consumer, producer, import and export price deflators, nominal interest rate and exchange rate. Most parameters of the model are calibrated and remaining ones are estimated by various estimation technique. Appropriateness of the model is judged by comparing statistics of simulated data with real ones, by analyzing impulse response functions and by reproducing historical time series.General equilibrium model, Slovakia