Modelo de Ciclos Reales para Colombia

Prada Sarmiento, Juan David (2005): Modelo de Ciclos Reales para Colombia.

Abstract

Colombian economy has the typical small-open economy cycle: smooth consumption, higher volatility in investment ; procyclical consumption, investment and imports; countercyclical trade balance. The objective of this paper is to identify the stylized facts and to replicate them quantitative and qualitatively through a simple dynamic stochastic general equilibrium model calibrated for Colombia. The model is used to assess the response of the economy to exogenous shocks in productivity, interest rates and fiscal policy. The standard RBC model is a good tool to replicate the stylized facts found for Colombia. However, it cannot replicate some facts about labour market, and underestimates the volatility of consumption and the relative volatility of investment with respect to GDP.

• Item Type: MPRA Paper
• English Title: A real business cycle model for Colombia
• Language: Spanish
• Keywords: Small open economy, real business cycle, Colombia
• Subjects: E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E32 - Business Fluctuations ; Cycles; E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E30 - General; E - Macroeconomics and Monetary Economics > E1 - General Aggregative Models > E13 - Neoclassical

References

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Schmitt-Grohe, S., and M. Uribe (2002): “Closing Small Open Economy Models,” Working paper 9270, National Bureau of Economic Research.