An Estimated DSGE Model of the Indian Economy

Published By: NIPFP on eSS | Published Date: November, 24 , 2011

A closed model DSGE model of the Indian economy is developed and it is estimated by Bayesian Maximum Likelihood methods using Dynare. A model is build up in stages to with a number of features important for emerging economies in general and the Indian economy in particular: a large proportion of credit-constrained consumers, a financial accelerator facing domestic fims seeking to finance their investment, and an informal sector. The simulation properties of the estimated model are examined under a generalized inflation targeting Taylor-type interest rate rule with forward and backward-looking components. [Working Paper No. 2011-95]. URL:[http://www.nipfp.org.in/newweb/sites/default/files/WP_2011_95.pdf].

Author(s): Vasco Gabriel, Paul Levine, Joseph Pearlman, Bo Yang | Posted on: Nov 28, 2011 | Views(764) | Download (213)


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