Palgrave Handbook of Econometrics: Applied Econometrics

852 Macroeconometric Modeling for Policy 17.4.3 Aspects of optimal policy: the impact of model specification on optimal monetary ...

Gunnar Bårdsen and Ragnar Nymoen 853 markedly over the last decades. The Lucas (1976) critique and the Clements and Hendry (1999 ...

854 Macroeconometric Modeling for Policy Economic analysis (1) is an indispensable guidance in the formulation of econo- metric ...

Gunnar Bårdsen and Ragnar Nymoen 855 shocks to the economic system, as implied by (4) above.^1 However, structure is partial in ...

856 Macroeconometric Modeling for Policy (2003) we have shown, by extensive testing of a previous version of our model, that the ...

Gunnar Bårdsen and Ragnar Nymoen 857 it follows that the main problems of macroeconometrics are model specification and model ev ...

858 Macroeconometric Modeling for Policy Iffis a linear function ofyandxthenR=0 and so: f(x,y)=a ( y−y ̄+ δ a (x−x ̄) ) =a(y−bx− ...

Gunnar Bårdsen and Ragnar Nymoen 859 wherefk+s=f(y(tk+sh),x(tk+sh)). The value of this latter integral is now computed using the ...

860 Macroeconometric Modeling for Policy Lettingyt≡(rw−βz)tandxt≡ztthen gives: rwt=−ac+a(rw−βz)t− 1 + a 2 %(rw−βz)t− 1 +βzt−a ...

Gunnar Bårdsen and Ragnar Nymoen 861 with: c 1 = ( y ̄ 1 +δ 1 ̄y 2 ) , δ 1 = α 12 α 11 c 2 = ( y ̄ 2 +δ 2 ̄y 1 ) , δ 2 = α 21 α ...

862 Macroeconometric Modeling for Policy with independent Gaussian errorsut, as a basis for valid statistical inference about ec ...

Gunnar Bårdsen and Ragnar Nymoen 863 Even though there now exists a literature on identification of cointegration vectors, it is ...

864 Macroeconometric Modeling for Policy supply side, which we refer to as ICM in the following (see Bårdsenet al., 2005, Chs. 5 ...

Gunnar Bårdsen and Ragnar Nymoen 865 Union utility depends on the consumer real wage of an unemployed worker and the aggregate r ...

866 Macroeconometric Modeling for Policy we obtain the solution for the bargained nominal wage: Wb= Q ( 1 +T 1 ) F(Pq( 1 +T 1 ), ...

Gunnar Bårdsen and Ragnar Nymoen 867 where we useqfas a reminder that this is a theoretical equation for firms’ price- setting. ...

868 Macroeconometric Modeling for Policy specified in terms ofwtandpt: wt=mw+ { 1 +ζ δ 12 ( 1 −ζ) } pt (17.25) − δ 12 ζ ( 1 −ζ) ...

Gunnar Bårdsen and Ragnar Nymoen 869 wage growth and productivity gains and with changes in the payroll tax rate, as well as wit ...

870 Macroeconometric Modeling for Policy (17.30) is given by: a12,0= α12,0 1 −ζ +β18,0, a21,0=( 1 −ζ)α21,0, a 12 (L)= α 12 (L) 1 ...

Gunnar Bårdsen and Ragnar Nymoen 871 condition thatδ 13 =1, homogeneity of degree one with respect to productivity, which we hav ...