期刊名称：Discussion Papers in Economics / Department of Economics, University of Surrey
出版年度：2010
卷号：2010
出版社：University of Surrey
摘要：We develop a closed-economy DSGE model of the Indian economy and estimate it
by Bayesian Maximum Likelihood methods using Dynare. We build up in stages to
a model with a number of features important for emerging economies in general and
the Indian economy in particular: a large proportion of credit-constrained consumers,
a ¯nancial accelerator facing domestic ¯rms seeking to ¯nance their investment, and
an informal sector. The simulation properties of the estimated model are examined
under a generalized in°ation targeting Taylor-type interest rate rule with forward and
backward-looking components. We ¯nd that, in terms of model posterior probabilities
and standard moments criteria, inclusion of the above ¯nancial frictions and an infor-
mal sector signi¯cantly improves the model ¯t.
