An Algorithm for Solving Simple Sticky Information New Keynesian DSGE Model

Chattopadhyay, Siddhartha and Agrawal, Manasi (2015): An Algorithm for Solving Simple Sticky Information New Keynesian DSGE Model. Published in: Trade and Development Review , Vol. 8, No. 2 (1 December 2015): pp. 120-137.

Abstract

This paper describes a new algorithm for solving a simple Sticky Information New Keynesian model using the methodology of Wang and Wen (2006). Impulse responses for demand and supply shock have been generated and analyzed intuitively. The strength of our algorithm lies in its analytical solution, which allow to uncover better intuition from the model.

• Item Type: MPRA Paper
• Language: English
• Keywords: New-Keynesian Model, Algorithm
• Subjects: C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C22 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes; C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C61 - Optimization Techniques ; Programming Models ; Dynamic Analysis; C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C63 - Computational Techniques ; Simulation Modeling; E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E52 - Monetary Policy

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