This paper sets up and estimates a DSGE model using Bayesian techniques applied to both simulated and real data for the Italian economy. Firstly, we conduct some empirical tests of habit formation on consumption growth, by estimating a GMM analysis of the consumption equation. Afterwards, this study estimates and compares, in terms of impulse responses, the DSGE model with a Bayesian VAR identified both with Cholesky decomposition and by imposing restrictions on the sign of impulse responses. Overall, this paper aims to give a reasonable approximation of the behavior of the Italian economy using both theoretical and empirical tools.

A DSGE model for Italy: Structural Analysis and Empirical Validation

Migliardo Carlo
2010

Abstract

This paper sets up and estimates a DSGE model using Bayesian techniques applied to both simulated and real data for the Italian economy. Firstly, we conduct some empirical tests of habit formation on consumption growth, by estimating a GMM analysis of the consumption equation. Afterwards, this study estimates and compares, in terms of impulse responses, the DSGE model with a Bayesian VAR identified both with Cholesky decomposition and by imposing restrictions on the sign of impulse responses. Overall, this paper aims to give a reasonable approximation of the behavior of the Italian economy using both theoretical and empirical tools.
File in questo prodotto:
Non ci sono file associati a questo prodotto.
Pubblicazioni consigliate

Caricamento pubblicazioni consigliate

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11570/1904949
 Attenzione

Attenzione! I dati visualizzati non sono stati sottoposti a validazione da parte dell'ateneo

Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus ND
  • ???jsp.display-item.citation.isi??? ND
social impact