The Spanish block of the ESCB-Multi-Country Model

• Autores: Alpo Willman, Angel Estrada García
• Localización: Documentos de trabajo - Banco de España, ISSN 0213-2710, Nº 12, 2002, págs. 9-68
• Idioma: inglés
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• Resumen

  • This paper presents the Spanish country block (ES-MCM) of the ESCB Multi-Country Model for the euro area, which has been built in a close co-operation with the ECB and the Banco de España. The theoretical structure of the ES-MCM block is in line with most current mainstream macro models, i.e. the supply factors determine the long-run equilibrium, while in the short run output is demanddetermined, res ulting from a sluggish adjustment of prices and quantities. The paper is structured as follows. First, a simplified theoretical counterpart of the ES-MCM block is presented and its steadystate comparative statistics and stock-flow equilibrium properties are studied. The theoretical analysis is followed by the review of the estimated equations of the ES-MCM block. Finally the simulation properties of the ES-MCM block are presented in the light of five alternative shock simulations.