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Analyzing MeMo-It supply side properties

Author

Listed:
  • Ottavio Ricchi

    (Ministero dell’Economia e delle Finanze, Dipartimento del Tesoro)

Abstract

The aim of this paper is to review the properties of the newly released MeMo-It econometric model by looking at its supply side. The analysis hinges on the link between potential output, which determines the level of GDP in the medium term, and all the channels of transmission that can affect it. The specification of the price, wage and participation rate equations are in turn examined so as to single out the interactions that arise amongst them. The analysis points out also that no homogeneity restrictions are imposed on the price and wage equations and it suggests that the impact on model properties of this decision should be farther investigated. The final section of the paper comments on the size of MeMo-It fiscal multipliers

Suggested Citation

  • Ottavio Ricchi, 2013. "Analyzing MeMo-It supply side properties," Rivista di statistica ufficiale, ISTAT - Italian National Institute of Statistics - (Rome, ITALY), vol. 15(1), pages 57-64.
    • Handle: RePEc:isa:journl:v:15:y:2013:i:1:p:57-64
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    References listed on IDEAS

    as
    1. Keith B. Church & Joanne E. Sault & Silvia Sgherri & Kenneth F. Wallis, 2000. "Comparative Properties of Models of the UK Economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 171(1), pages 106-122, January.
    2. Colin Hargreaves (ed.), 1992. "Macroeconomic Modelling Of The Long Run," Books, Edward Elgar Publishing, number 207.
    3. Cicinelli, Claudio & Cossio, Andrea & Nucci, Francesco & Ricchi, Ottavio & Tegami, Cristian, 2010. "The Italian Treasury Econometric Model (ITEM)," Economic Modelling, Elsevier, vol. 27(1), pages 125-133, January.
    4. Angelini, Elena & McAdam, Peter & D'Agostino, Antonello, 2006. "The Italian block of the ESCB multi-country model," Working Paper Series 660, European Central Bank.
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    More about this item

    Keywords

    model properties; supply side; static and dynamic homogeneity;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General

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