BoGGEM: A DYNAMIC STOCHASTIC GENERAL EQUILIBRIUM MODEL FOR POLICY SIMULATIONS
Bank of Greece
This paper presents the theoretical foundations and dynamic properties of a dynamic stochastic general equilibrium (DSGE) model designed for quantitative policy analysis and counterfactual exercises. The approach of the paper can be summarized as follows. First, we present the model’s theoretical framework and building blocks. Then, we calibrate the model to the Greek economy and examine the dynamic properties of the model by inspecting the sample moments produced by the model, reporting impulse response functions to a number of shocks, and by performing variance decomposition analysis. The results indicate that the model performs quite well in these contexts.
JEL Classification Codes: E27, E30, E52, E60
Keywords: Dynamic stochastic general equilibrium model, Small open economy, Greece.
Acknowledgments: I would like to thank Heather Gibson, Apostolis Philippopoulos, Vanghelis Vassilatos and Evangelia Vourvachaki for constructive comments and suggestions. I am grateful to Heather Gibson and George Tavlas for their support throughout this project. Helpful comments by seminar participants at the Bank of Greece are greatly appreciated. The views expressed in this paper are those of the author and do not necessarily reflect those of the Bank of Greece. Any errors are my own.
Economic Analysis and Research Department
Bank of Greece,
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Email: DPapageorgiou@bankofgreece.gr / email@example.com
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