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Le modèle d'équilibre général de la « Nouvelle synthèse » : quelles hypothèses retenir ?

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  • Stéphane Moyen
  • Jean-Guillaume Sahuc

Abstract

This article has a twofold purpose. First, it describes the general-equilibrium model of the ?new synthesis,? which has rapidly become a true benchmark for macroeconomic analysis in areas such as economic-policy simulation and inflation forecasting. Second, it seeks to identify the contribution of nominal and real rigidities to the good performance of this type of model, using the marginal-likelihood criterion and the inspection of moments of order two. The main results are as follows: (1) the combination of rigid and indexed prices and rigid wages is essential to the quality of themodel?s fit to the data; (2) the only hypotheses needed are habit formation for consumption and adjustment costs for investment, the second hypothesis being crucial for reproducing real and nominal dynamics; (3) by introducing strategic complementarity, we can obtain a degree of nominal rigidity closer to that observed on macroeconomic data.

Suggested Citation

  • Stéphane Moyen & Jean-Guillaume Sahuc, 2008. "Le modèle d'équilibre général de la « Nouvelle synthèse » : quelles hypothèses retenir ?," Economie & Prévision, La Documentation Française, vol. 0(2), pages 15-34.
    • Handle: RePEc:cai:ecoldc:ecop_183_0015
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    Cited by:

    1. Jihene Bousrih, 2012. "Degree of openness and inflation targeting policy: model of a small open economy," Journal of Financial Economic Policy, Emerald Group Publishing Limited, vol. 4(3), pages 232-246, July.

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    More about this item

    Keywords

    DSGE models; nominal rigidities; real rigidities;
    All these keywords.

    JEL classification:

    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling

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