BOFIT Discussion Papers, Institute for Economies in Transition, Bank of Finland
No 14/2009:
Stock market wealth effects in an estimated DSGE model for Hong Kong
Michael Funke ()
, Michael Paetz and Ernest Pytlarczyk
Abstract: This paper develops and estimates an open economy dynamic
stochastic general equilibrium (DSGE) model of the Hong Kong economy. The
model features short-run price rigidities generated by monopolistic
competition and staggered reoptimisation. The model is enhanced with wealth
effects due to stock price dynamics, which we believe to be important. For
this reason we adopt a perpetual youth approach. Model parameters and
unobserved components are estimated with a Bayesian maximum likelihood
procedure, conditional on prior information concerning the values of
parameters.
Keywords: DSGE models; wealth effects; open economy; Hong Kong; (follow links to similar papers)
JEL-Codes: D91; E21; E44; F41; (follow links to similar papers)
43 pages, October 21, 2009
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:
DP1409.pdf 
Download Statistics
Questions (including download problems) about the papers in this series should be directed to Päivi Määttä ()
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Programing by
Design by Joachim Ekebom
