The Banking and Distribution Sectors in a Small Open Economy DSGE Model

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Show simple item record DEÁK, Szabolcs FONTAGNE, Lionel MAFFEZZOLI, Marco MARCELLINO, Massimiliano 2012-09-24T12:01:16Z 2012-09-24T12:01:16Z 2012
dc.identifier.issn 1028-3625
dc.description.abstract The recent crisis has emphasized the role of financial - macroeconomic interactions, and international trade in goods and services, in the transmission of the shocks. Both phenomena, closely related to the higher degree of globalization, are very relevant for small open economies, and particularly so when a large share of the economy relies on financial and distribution services. Hence, in this paper we propose to incorporate the banking and distribution sectors into a medium scale DSGE model of a small open economy. As an illustration, the resulting model is then calibrated to match the specific characteristics of the Luxembourg economy, where the financial sector plays a key role. We believe that the results are also of more general interest for studying the reaction of small open economies to real and financial shocks. en
dc.format.mimetype application/pdf
dc.language.iso en en
dc.relation.ispartofseries EUI RSCAS en
dc.relation.ispartofseries 2012/53 en
dc.relation.ispartofseries Pierre Werner Chair Programme on Monetary Union en
dc.rights info:eu-repo/semantics/openAccess
dc.subject DSGE model en
dc.subject Small open economy en
dc.subject Banking en
dc.subject International trade en
dc.subject Luxembourg en
dc.subject Segmented labor market en
dc.subject Trade union en
dc.subject E13 en
dc.subject E32 en
dc.title The Banking and Distribution Sectors in a Small Open Economy DSGE Model en
dc.type Working Paper en
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