Empirical Methodologies and Software Tools

The first step of empirical analysis is model identification, assigning appropriate values to all the parameters included in the model. The importance of model identification should be emphasized in DSGE modelling exercises because models of this type are

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Dynamic Macroeconomic Models in Emerging Market Economies

Daniel Lukui Jia

Dynamic Macroeconomic Models in Emerging Market Economies DSGE Modelling with Financial and Housing Sectors

Daniel Lukui Jia Beijing, China

ISBN 978-981-15-4587-0 ISBN 978-981-15-4588-7 (eBook) https://doi.org/10.1007/978-981-15-4588-7 © The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2020 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, expressed or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. This Palgrave Macmillan imprint is published by the registered company Springer Nature Singapore Pte Ltd. The registered company address is: 152 Beach Road, #21-01/04 Gateway East, Singapore 189721, Singapore

Foreword

The evolution of economics is a process of reviewing, rethinking, developing and empirically examining it. After the sad experience of the Global Financial Crisis (GFC), relevant rethinking emerged in terms of the relevant experience with monetary and other policies and their role in terms of their effects on the GFC. Scholars turned their attention to the modern mainstream macroeconomics, especially on the theoretical basis of the policy of the majority of central banks. This book examines the development of modern mainstream macroeconomics, focusing on its theoretical framework and emphasizing its empirical dimension. Emerging market economies is the focus of the book in terms of these aspects, emphasizing the dynamic modelling in these economies. Theoretically, this book extends the New Consensus Macroeconomics (NCM) to better account for important economic and social features in emerging market economies; thereby filling a gap in the existing literature. In particular, the inclusion of social stratification and incorporation of household heterogeneities adds realism to the theoretical framework, which better accounts for underlying social s