Title :
Money Shock in Dynamic Stochastic General Equilibrium Models
Author :
Yang Liu ; Li, Li
Author_Institution :
Sch. of Econ., Central of China Normal, Wuhan
Abstract :
Based on the China economy data 1996-2005, two issues are addressed in this paper. First, we examine the ability of the DSGE model to describe stylized facts about China economy. The model succeeds to replicate the variability observed in 1996-2005. Second, we compare two methods of motivating money in DSGE Model. Drawing on our econometric analysis, we argue that the cash-in-advance model, closed by a money growth rule, comes closer to the data.
Keywords :
econometrics; economic indicators; financial management; stochastic processes; China economy; cash-in-advance model; dynamic stochastic general equilibrium model; econometric analysis; money shock; Calibration; Computer simulation; Data mining; Dynamic equilibrium; Econometrics; Elasticity; Electric shock; Macroeconomics; Numerical simulation; Stochastic processes; CIA; Dynamic Stochastic General Equilibrium Model; MIU; Money Shock;
Conference_Titel :
Knowledge Discovery and Data Mining, 2009. WKDD 2009. Second International Workshop on
Conference_Location :
Moscow
Print_ISBN :
978-0-7695-3543-2
DOI :
10.1109/WKDD.2009.223
