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DYNIMO - Version III. A DSGE model of the Icelandic economy

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  • Stefán Thórarinsson

Abstract

This handbook describes the third version of DYNIMO, the Central Bank of Iceland’s dynamic stochastic general equilibrium model. Derivations from first principles to final equations are presented. In addition, the more advanced mathematical tools needed for the derivations are stated and their validity motivated. Subsequently, we estimate the model on Icelandic data over the period 2011Q1-2019Q4. Finally, evaluation of the model’s properties is performed.

Suggested Citation

  • Stefán Thórarinsson, 2020. "DYNIMO - Version III. A DSGE model of the Icelandic economy," Economics wp84, Department of Economics, Central bank of Iceland.
    • Handle: RePEc:ice:wpaper:wp84
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    More about this item

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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