S-WoPEc
 
Scandinavian Working Papers in Economics
HomeAboutSeriesSubject/JEL codesAdvanced Search
Konjunkturinstitutet - National Institute of Economic Research Working Papers, Konjunkturinstitutet - National Institute of Economic Research

No 88:
Modelling the Foreign Sector in a Macroeconometric Model of Sweden

Jan Alsterlind (), Alek Markowski () and Kristian Nilsson ()

Abstract: The purpose of this paper is to estimate a rudimentary model of the ôrest of the world", which may serve as the foreign sector in a model of the Swedish economy. The ôrest of the world" is here represented by the US and the euro zone which together cover some two thirds of the Swedish foreign trade. The underlying theoretical model is the so-called Svensson model as of Svensson (1997). This model has the advantage that it is small and simple, but still allows for both supply and demand shocks with realistic responses. The Svensson model is estimated (OLS) for the US and the euro zone separately using quarterly data. Furthermore, following Smeets and Peersman (1999), alternative models with the outputgap treated as an unobserved component are estimated as well. Impulse response analyses indicate that all individual models react reasonably well to both supply and demand shocks. The models for the US and the euro zone are aggregated temporally to annual data (since the model of the Swedish economy uses annual data) and are subsequently aggregated into one model of the foreign sector.

31 pages, January 1, 2004

Before downloading any of the electronic versions below you should read our statement on copyright.
Download GhostScript for viewing Postscript files and the Acrobat Reader for viewing and printing pdf files.

Full text versions of the paper:

Working-Paper-88-Modellin ... etric-Model-of-Sweden.pdf    PDF-file
Download Statistics

Questions (including download problems) about the papers in this series should be directed to Sarah Hegardt Grant ()
Report other problems with accessing this service to Sune Karlsson () or Helena Lundin ().

Programing by
Design by Joachim Ekebom

Handle: RePEc:hhs:nierwp:0088 This page was generated on 2016-12-07 23:04:10