DSGE - Science topic

A Lawson-type exponential integrator combined with the Fourier pseudo-spectral method is provided for the nonlinear Double Sine-Gordon equation (DSGE), while the nonlinearity is characterized by \documentclass[12pt]{minimal} \usepackage{amsmath} \usepackage{wasysym} \usepackage{amsfonts} \usepackage{amssymb} \usepackage{amsbsy} \usepackage{mathrsfs...

This study investigates the integration of non-economic policies into the framework for assessing macroeconomic coherence as applied by the Chinese government, with a particular focus on green policies. We examine the impact of non-economic factors on social disagreement and investor disagreement (expectations), and how these influences interact wi...

Dynare is a popular software for solving dynamic stochastic general equilibrium (DSGE) and overlapping generations (OLG) models. It is used along with Octave or Matlab. However, writing documents using Dynare outputs can be error-prone and time-consuming, as it requires copying and pasting the outputs into the document. To address this problem and...

The Dynamic Stochastic General Equilibrium (DSGE) model has become a cornerstone of macroeconomic analysis, yet research in emerging economies like India remains limited. This study makes a significant contribution by introducing behavioral expectation formation into a New Keynesian DSGE model of the Indian economy, a novel approach absent in exist...

Ante la necesidad de repensar las reglas fiscales, buscando un equilibrio que propicie un anclaje fiscal sólido y proteja la inversión para asegurar el crecimiento económico, el presente documento se centra en responder el siguiente interrogante: ¿Cuál regla fiscal resulta más efectiva para alcanzar la sostenibilidad y credibilidad fiscal en Colomb...

Achieving carbon peak and neutral as scheduled requires joint efforts to reduce emissions and increase sinks. But in the long term, mitigating climate change requires the latter to play a greater role, in which achieving economic and environmental benefits through ocean carbon sink trading is an indispensable and important measure. Around the ocean...

We introduce a new concept of distance, and the way this could affect gravity-based trade modeling. Our motivation is twofold: a) global uncertainty in trade relations allows us to treat distance as an asymmetric shock in economic modeling; b) economies of scale in seaborne trade make geographical distance less relevant in trade models, substituted...

بررسی تأثیر درآمدهای نفتی بر تحقق درآمدهای مالیاتی در شرایط رانتجویی مالیاتی: رویکردDSGE

Emerging markets have experienced land booms and busts along with international capital inflows and outflows repeatedly. This study quantitatively examines the effectiveness of (i) macroprudential policies targeting land markets and (ii) capital controls targeting capital inflows and outflows. We analyze which policy better manages the coincidence...

مالیات اصلی ترین و پایدارترین منبع مالی دولت است که نقش مهمی در افزایش درآمد دولت دارد . تحقق درآمدهای مالیاتی به ساااارار اصردااادی کشااهرها بساار ی دارد، طی سااا های اایر باال بهدن سااه درآمدهای نفری نسابت به درآمدهای مالیاتی در بهدهه دولت، مهه دادت تا سااارارهای مالیاتی کشاهر به اهبی داانگ ن رفره و افراد تمایگ اندانی برای پرداات مالیات نداداا...

Tax is the main and most stable financial source of the government and plays an important role in increasing the government's income. The level of realization of tax revenues depends on the economic structure of the country. In recent years, with the outrages rise of prices and the formation of high inflation in the country, people are reluctant to...

Data shows that, the US Treasury has increasingly issued more long-term bonds to …nance expenditures in the periods of …nancial crisis, whose duration is comparatively higher than the pre-crisis periods. Using ad-hoc, partial equilibrium models, existing literature explain this as a strategic debt management approach of the Treasury to mitigate the...

Public sector employment in China has exhibited pronounced non-cyclical characteristics, with a recruiting scale and wage level showing limited responsiveness to economic fluctuations. The allure of civil service jobs in China has seen a significant resurgence post-COVID-19, with an observable increase in demand among educated job seekers for stabl...

This paper presents and compares Bernoulli iterative approaches for solving linear DSGE models. The methods are compared using 99 different models from the macroeconomic model data base (MMB) and different parameterizations of the monetary policy rule in the medium-scale new Keynesian model of Smets and Wouters (Am Econ Rev 97(3):586–606, 2007. htt...

We use the New Keynesian Dynamic Stochastic General Equilibrium (DSGE) framework and Vector Autoregressive (VAR) to investigate the usefulness and relevancy of monetary services, augmented to include credit card transaction services. We use the new credit-card-augmented Divisia monetary aggregates in the models to further the existing research on t...

Modern macroeconomic models, particularly those grounded in Rational Expectation Dynamic Stochastic General Equilibrium (DSGE), operate under the assumption of fully rational decision-making. This paper examines the impact of behavioral factors, particularly 'animal spirits' (emotional and psychological influences on economic decisions) and 'inflat...

This study estimates the monetary policy reaction function (MPRF) in a Dynamic Stochastic General Equilibrium (DSGE) framework using Bayesian analysis for the emerging economies. DSGE models are suitable for the policy analysis because of their simplicity and prominent role of forward-looking variables. This is a pioneer study investigating the com...

RESUMO: O artigo estuda os modelos Dinâmico de Equilíbrio Geral Estocástico (DSGE) desde sua origem até 2016, tendo como objetivos mostrar a evolução da quantidade de publicações sobre DSGE, os artigos mais citados, os periódicos que mais publicam e os principais ramos de pesquisa. Utilizam-se análise bibliométrica descritiva e de cocitação. Os res...

Hong Kong is seen as a flexible economy for its free movement of capital and perfect competitive business environment, but most researches either take this background as a default to set the flexible price, or take priors in other economies as a starting point of estimation and they are not tested against data. This paper studies the price stickine...

In Iran, the Monetary and Credit Council determines the rate of interest in terms of inflation rate and in a normative way. Critics of the country's banking system believe the issue is incompatible with the spirit of Islamic banking (i.e. sharing profits and losses). And Islamic banking is anti-business cycles, which is not possible in Iran's curre...

Along with the new stage of prevention and control of the COVID-19 pandemic and the vision and goals of combatting climate change, the challenges of the transition to a green economy have become more severe. The need for green recovery of the economy, stability and security of energy production and consumption, and the coordination of low-carbon tr...

This study investigated the effect of Ethiopia's recent macroeconomic reform on economic and political stability in the country in the short run period. The study further examines role of foreign aid/grants in mitigating the adverse effects of the reform. A quarterly time series data on major macroeconomic and political stability indicators was use...

This study utilizes the DSGE model DIGNAD to assess the economic impacts of natural disasters on Madagascar. Four distinct scenarios are analyzed: the first scenario (zero scenario) simulates the effects of a natural shock occurring in 2027. The second scenario evaluates the impact of investing 1% of GDP in resilient infrastructure over a 5-year pe...

Динамічне моделювання тіньової економіки стає невід'ємною складовою сучасної економічної аналітики. Воно дозволяє враховувати складні взаємозв'язки та динаміку явища тіньової економіки, що є критичним для аналізу її впливу на глобальні фінансові та економічні процеси в країні та поза її межами. Використання даних в режимі реального часу та інтелект...

The Iranian government has traditionally financed its budget deficit through borrowing from the Central Bank. In contrast, many countries rely on bonds as the primary method to finance the budget deficit. The Iranian economy rejects this method based on religious considerations. Islamic Economists in Iran have proposed an alternative financial inst...

Este artigo tem o propósito de avaliar os efeitos dos impostos e da fiscalização sobre o setor informal brasileiro. É adotada estratégia para análise dos canais de transmissão por meio de um modelo DSGE de dois setores e que possibilite a construção de cenários com a redução e simplificação de impostos, como também a redução da fiscalização das fir...

The study investigates alternative monetary policy rules in commodity-exporting African countries, by formulating, estimating and simulating a DSGE model for 5 African countries. We apply the Bayesian technique for our estimation and utilize impulse response functions to evaluate alternative monetary policy rules to commodity price shocks. Our resu...

The importance that different (approaches and models) to modeling the macroeconomy place on theoretical coherence compared to their capacity to match the data and the quality of the econometric model description varies. Dynamic stochastic general equilibrium (DSGE) models are more theoretical, whereas vector autoregression (SVAR) models provide a b...

Through the dynamic stochastic general equilibrium model (DSGE model), this article explores the balance between economic development and environmental protection, focusing on the in-depth mutual influence among economic agents such as households, banks, producers, and government in promoting economic growth and achieving environmental protection....

This paper aims to theoretically investigate how the presence of heterogeneous consumption behaviors, namely hand-to-mouth (HtM) and habit formation (HF), affects the monetary policy effectiveness and empirically explore the responses of three Association of Southeast Asian Nations (ASEAN) economies to external shocks. We employ the Bayesian method...

This research aims to explore the fiscal and public finance viability on climate physical risk externalities cost for building social-economic-environmental sustainability. It analyzes climate physical risk impact on the real business cycle to change the macroeconomic output functions, its regressive cyclic impact alters tax revenue income and publ...

O presente artigo traz uma abordagem de interação entre política fiscal e desemprego através de um modelo dinâmico estocástico de equilíbrio geral (DSGE) que versa, sobretudo, analisar efeitos de políticas fiscais trabalhistas sobre o desemprego. O modelo permite fazer considerações acerca dos mercados de trabalho formal e informal, avaliar o prêmi...

Several business cycle models exhibit a recursive timing structure, which enforces delayed propagation of exogenous shocks driving short-run dynamics. We propose a bootstrap-based empirical strategy to test for the relevance of timing restrictions and ensuing shock transmission delays in DSGE environments. In the presence of strong identification,...

Implementing green fiscal and tax policies for reducing emissions and pollution without negatively impacting economic growth remains a challenge. We aimed to determine whether environmental protection and economic growth can both be attained under a green fiscal and tax policy. Specifically, we created a dynamic stochastic general equilibrium (DSGE...

A sociedade e a economia mundial enfrentaram desafios significativos decorrentes da pandemia de COVID-19, incumbindo-as de preservar não apenas a saúde dos cidadãos, mas também a vitalidade dos empreendimentos. O impacto na economia tornou-se evidente, seja pela elevada taxa de contaminação que afetou diretamente as pessoas e sobrecarregou o sistem...

The importance that different (approaches and models) to modeling the macroeconomy place on theoretical coherence compared to their capacity to match the data and the quality of the econometric model description varies. Dynamic stochastic general equilibrium (DSGE) models are more theoretical, whereas vector autoregression (SVAR) models provide a b...

This thesis aims to analyze the nexus between climate policy and monetary policy using the DSGE approach in the context of Norway. It considers two central themes: first, whether subsidization of electric vehicles could substantiate emission reduction, and second, whether it could be a better idea to involve the government in direct economic activi...

The study examines the role of monetary policy in influencing business cycles in Nigeria, Brazil, and China by estimating a small open sticky-price Dynamic Stochastic General Equilibrium (DSGE) model. The role of monetary policy is sub-divided into anticipated and unanticipated. Using quarterly data from 1986:1 to 2022:4, results show that monetary...

Dynare is a software platform for handling a wide class of economic models, in particular dynamic stochastic general equilibrium (DSGE) and overlapping generations (OLG) models. The models solved by Dynare include those relying on the rational expectations hypothesis, wherein agents form their expectations about the future in a way consistent with...

This paper analyzes a dynamic stochastic equilibrium model of an asset market based on behavioral and evolutionary principles. The core of the model is a non-traditional game-theoretic framework combining elements of stochastic dynamic games and evolutionary game theory. Its key characteristic feature is that it relies only on objectively observabl...

This study delves into the repercussions of fiscal policies, particularly those marked by high expenditure financed by monetary means, on key macroeconomic indicators in Sierra Leone. Employing a Dynamic Stochastic General Equilibrium (DSGE) model, the analysis illuminates how shocks in one variable ripple through the entire economic system over ti...

Evolutionary Finance explores financial markets as evolving biological systems. Investors pursuing diverse investment strategies compete for the market capital. Some “survive” and some “become extinct”. A central goal is to identify strategies guaranteeing survival in the market selection process. The problem is analyzed in frameworks combining sto...

Facing the problem of a lack of endogenous incentive mechanisms for the development of green finance, we regard blockchain technology as an institutional technology and elevate it to the height of governance mechanisms. Using a dynamic stochastic general equilibrium (DSGE) model framework, we compare and analyze its effects with traditional support...

Ethiopia has set the goal to be one of the Lower-Middle-Income (LMI) economies in the world by 2025. With that the target is to reach a GDP range of 147.5 to 578.4 bl. US$ and a GDP per capita range of 1,137 to 4,458 US$ by 2025. The present study asks whether Ethiopia is likely to reach these targets or not if the trends, dynamics, and volatility...

This paper presents a semi-structural macroeconomic model aimed at facilitating policy analysis and forecasting, primarily in countries with imperfect capital mobility and hybrid monetary policy regimes. Compared to earlier gap-trend projection models, the Forecasting Model of Internal and External Balance (FINEX) contains three main innovations: i...

The DSGE (Dynamic Stochastic General Equilibrium) methodology attempts to explain the behavior of aggregate economic phenomena, such as economic growth, business cycle, and the effects of monetary and fiscal policy, using macroeconomic models derived from microeconomic foundations. DSGE models study the economy evolution (dynamics) over time. They...

In the 1990s, the competition between Keynesian and Classical ideas on macroeconomics ended with the ‘the new neoclassical synthesis’. The synthesis led to the Dynamic Stochastic General Equilibrium (DSGE) models, which is regarded as a powerful instrument for analyzing policy, forecasting and governing Central Banks (CB). Discussion has been made...

In the 1990s, the competition between Keynesian and Classical ideas on macroeconomics ended with the ‘the new neoclassical synthesis’. The synthesis led to the Dynamic Stochastic General Equilibrium (DSGE) models, which is regarded as a powerful instrument for analyzing policy, forecasting and governing Central Banks (CB). Discussion has been made...

The interaction between fiscal and monetary policies in achieving macroeconomic goals has been a subject of debate, particularly on whether they complement or substitute each other. This issue arises when both policy authorities are independent of each other. This study aims to revisit the interaction of fiscal and monetary policies in Nigeria and...

Ushbu maqolada makroiqtisodiy tahlillarda qo’llaniladigan DSGE modelinig ta’rifi, uning strukturasi, foydalanish shartlari, hamda uning tenglamalari haqida tahlilimizni olib boramiz. Qo’shimcha ravishda, ushbu modelning boshqa modellardan farqi va uni o’rganishga hissa qo’shgan mualliflarning ushbu model bo’yicha fikrlari bilan ham ushbu maqola dav...

Demand and productivity shocks may influence the direction of monetary policy, especially if the impacts of the shocks are lasting. For instance, the global financial crises in 2009 and the COVID-19 pandemic in 2020 led to the implementation of unorthodox monetary policy, which influenced the objectives of most central banks in the world including...

Esta investigación analiza el desempeño de una regla fiscal que responde al ciclo económico y la posición de la deuda pública en un modelo de equilibrio general dinámico estocástico (DSGE) con un canal de crecimiento endógeno que será impulsado por el total de horas trabajadas considerando fricciones en el mercado de trabajo. Se estimó el modelo a...

This article examines the limitations of dynamic stochastic general equilibrium models used prior to the financial crisis in analyzing the impact of financial frictions on real economic activity. The existing models suffer from several shortcomings, such as their failure to replicate the amplifying effect of shocks caused by financial frictions. Ad...

In the aftermath of the COVID-19 pandemic, the dramatic increase in maritime transport costs might potentially exert detrimental impacts on the macroeconomy, especially for countries that heavily rely on international trade for their consumption and production activities. Our study employs a small open economy DSGE (Dynamic Stochastic General Equil...

We start from the premise that all markets, regardless of the shocks they experience, tend toward equilibrium. This is a characteristic that has been identified for any type of market, as the balance is required to be achieved in order for them to evolve. We are evolving a Dynamic General Stochastic Equilibrium model (DSGE) in order to assess and a...

Purpose The purpose of this paper is to fill the momentous gap by explicitly investigating the asymmetric effects of monetary policy (MP) on non-bank financial intermediation (NBFI) assets. Design/methodology/approach The authors utilized panel data from 29 countries for the period of 2012–2020 and used the quantile regression estimation. In addit...

La modélisation économique joue un rôle crucial dans un pays car elle permet de mieux comprendre les interactions complexes entre les variables économiques et d'anticiper les impacts des décisions économiques au moyen des outils d'analyse et de prévision. Dans la présente note, nous recensons particulièrement les modèles macroéconomiques en usage à...

Exogenous shocks of demand and productivity tend to influence the direction of Monetary Policy. For instance, the global financial crises in 2009 and the COVID-19 pandemic in 2020 negatively impacted the macroeconomic policy objectives of most central banks, including those of the Bank of Ghana. Thus, this paper seeks to analyze the dynamic respons...

The degree to which the banking sector opens up will immediately impact the structure of the national financial system, which will then directly influence the transmission mechanism and effect of monetary policy because it is the fundamental link in the financial system. This study describes the DSGE model of two nations with heterogeneous banks in...

The paper addresses a trade-off between the degree of fiscal dominance and fiscal and monetary sustainability conditions. The research aims at finding growth incentives in the complex fiscal-monetary environment. By testing the actual data, the study introduces the empirical specification of the non-linear relationship between the dynamics of broad...

Facing the problem of a lack of endogenous incentive mechanisms for the development of green finance, we regard blockchain technology as an institutional technology and elevate it to the height of governance mechanisms. Using a dynamic stochastic general equilibrium (DSGE) model framework, we compare and analyze its effects with traditional support...

Various small and large, conventional and interest-free, DSGE models havebeen developed, simulated, and compared. After a large conventionalmodel, an interest-free NK model was prepared with household preferences,retail firms, and capital-producing firms. The deduction of zakat wassuggested with appropriate incidence. The model was estimated usingq...

This article raises the question of the conduct of a common macroprudential policy aimed at correcting specific financial imbalances in the presence of structural heterogeneity that characterizes the monetary zone, in this case the WAEMU zone. For this reason, we develop a neo-Keynesian DSGE[1] model in an open economy with two countries, namely th...

Low-carbon development requires joint efforts in terms of “carbon reduction” and “carbon sink increase.” This study thus proposes a DICE-DSGE model for exploring the environmental and economic benefits of ocean carbon sinks and provides policy suggestions for marine economic development and carbon emission policy choices. The results are as follows...

The design of China’s industrial carbon reduction policies is still in its early stages, so currently, comparing the effectiveness of various emission reduction policies can help China design emission reduction policies. This paper develops a dynamic stochastic general equilibrium (DSGE) model of China’s manufacturing industry and investigates the...

This paper integrates the Austrian school’s production structure theory and financial market theory, considers the impact of heterogeneity of firms’ production cycles on economic fluctuations, constructs a DSGE model that incorporates production structure, and uses the model to analyse the existence of multiple equilibria and endogenous financial e...

We conducted a study analyzing the impact of productivity shocks on equity returns in the U.S. economy from Q1 1960 to Q1 2022 using an RBC DSGE model. Our results suggest that while initial productivity shocks lead to higher equity returns, this effect fades within eight quarters. Nonetheless, such shocks can still provide valuable signals for inv...

Los modelos estocásticos de equilibrio general, o DSGE por sus siglas en inglés (Dynamic stochastic general equilibrium) se han convertido en los modelos económicos más utilizados en la macroeconomía moderna. Por lo anterior, el objetivo de este documento es analizar el origen, la evolución y el estado actual del estudio del enfoque DSGE, así como...

From the past century, humanity has never witnessed such a health crisis like the Covid-19 worldwide pandemic. Since it was declared a global health crisis in March 2020, country governments have put forth efforts to curb transmission of the disease and to manage the impacts on the economy. The forced measures have caused adverse and difficult to m...

Данная статья посвящена исследованию динамических стохастических моделей общего равновесия (DSGE) в экономических системах. Под DSGE моделью понимаются современные макроэкономические модели, параметры которых основаны на моделировании поведения экономических агентов на микроуровне, предусматривающие также моделирование различных стохастических «шок...

The objective of this working paper is to provide an introduction to the Dynamic Stochastic General Equilibrium Model with Friction (DSGE). A simple model that is based on theoretical achievements from the literature. The model is composed of three (3) agents who meet on the market and the economy is assumed to be open, i.e. having relations with t...

Whether the implementation of the water resources tax policy can stimulate the water-saving behavior of social water users is one of the important criteria for evaluating the implementation effect of the tax reform policy. Taking Hebei Province, the first tax reform pilot in China, as an example. A dynamic stochastic general equilibrium model (DSGE...

The Chinese water administration department has continuously explored and formulated regulatory and market-oriented water control policies to alleviate the contradiction between water shortage and economic and social development and promote the new idea of ‘water-saving first’ water control. Among them, implementing a water resources tax policy as...