Journal Article

DSGE modelling for the UK economy, 1974-2017


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.

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Litsios, Ioannis
Pilbeam, Keith
Asteriou, Dimitrios

Oxford Brookes departments

Oxford School of Hospitality Management


Year of publication: 2020
Date of RADAR deposit: 2020-04-27

Creative Commons License This work is licensed under a Creative Commons Attribution 4.0 International License

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