The behaviour of the Romanian economy analysed based on a dynamic stochastic general equilibrium model

Figures & data

Table 1. Estimation results relating to the model parameters.

Parameter	Prior mean	Mode	Posterior mean	Confidence interval
λw	1.2500	2.5135	2.5147	2.4798	2.5508
λd	1.1500	1.6028	1.5979	1.5626	1.6280
λm	1.2000	1.2841	1.2772	1.2456	1.3110
λc	1.0500	0.9105	0.8997	0.8644	0.9265
λi	1.0500	1.3737	1.3826	1.3225	1.4454
λg	1.0500	1.0222	1.0281	0.9777	1.1023
λx	1.0500	0.8743	0.8643	0.8188	0.9099
ηh	0.5000	0.2348	0.2399	0.2259	0.2632
η*	0.5000	0.3794	0.3769	0.3455	0.4072
wh	0.4000	0.2477	0.2458	0.2373	0.2562
S	7.600	14.3737	14.4029	14.1799	14.7231
ξw	0.8400	0.7176	0.7188	0.7082	0.7265
ξd	0.7900	0.7452	0.7459	0.7365	0.7569
ξm	0.5000	0.1174	0.1138	0.1035	0.1251
ξc	0.6300	0.9400	0.9387	0.9344	0.9428
ξi	0.6300	0.9039	0.9003	0.8927	0.9072
ξg	0.6300	0.8946	0.8924	0.8845	0.9010
ξx	0.4400	0.8751	0.8748	0.8692	0.8819
kw	0.5000	0.1729	0.1661	0.1358	0.1829
kd	0.5000	0.8341	0.8354	0.8091	0.8680
km	0.5000	0.5932	0.5979	0.5816	0.6158
kc	0.5000	0.8955	0.8950	0.8818	0.9112
ki	0.5000	0.6804	0.6661	0.6459	0.6855
kg	0.5000	0.4767	0.4764	0.4613	0.4910
kx	0.5000	0.4439	0.4488	0.4126	0.4744
ρχ	0.6000	0.4303	0.4335	0.4139	0.4639
ρζ^c	0.6000	0.5406	0.5484	0.5194	0.5727
ρζ^h	0.6000	0.5460	0.5460	0.5281	0.5608
ρø˜	0.6000	0.3784	0.3830	0.3530	0.4094
ρΩ	0.6000	0.3594	0.3495	0.3258	0.3704
ρλ^d	0.6000	0.8715	0.8719	0.8596	0.8828
ρλ^m	0.6000	0.8588	0.8566	0.8391	0.8771
ρλ^c	0.6000	0.8030	0.8042	0.7936	0.8184
ρλ^i	0.6000	0.8979	0.8967	0.8849	0.9082
ρλ^g	0.6000	0.9598	0.9577	0.9471	0.9683
ρλ^x	0.6000	0.9827	0.9825	0.9785	0.9872
ρμz	0.6000	0.8212	0.8194	0.8003	0.8373
ρμ*z	0.6000	0.8028	0.8092	0.7857	0.8392
ρτ^y	0.6000	0.4002	0.4055	0.3905	0.4287
ρτ^c	0.6000	0.3820	0.3799	0.3602	0.4035
ρg	0.6000	0.6135	0.6161	0.5948	0.6486
ρπ*	0.6000	0.9834	0.9837	0.9822	0.9853
ρy*	0.6000	0.4914	0.4923	0.4738	0.5080
ρr*	0.6000	0.5502	0.5637	0.5440	0.5856
ρπ¯	0.6000	0.5296	0.5206	0.5025	0.5383
σηχ	0.1500	0.3167	0.3117	0.2709	0.3353
σηζ^c	0.1500	0.2363	0.2206	0.1817	0.2529
σηζ^h	0.1500	0.5091	0.5202	0.4921	0.5477
ση ø˜	0.0200	0.1542	0.1516	0.1490	0.1542
σηΩ	0.0200	0.0103	0.0113	0.0086	0.0149
σηλ^d	0.1500	0.6475	0.6576	0.6305	0.6856
σηλ^m	0.1500	0.0571	0.0568	0.0428	0.0674
σηλ^c	0.1500	2.1090	2.1137	2.0690	2.1574
σηλ^i	0.1500	0.8780	0.8833	0.8307	0.9497
σηλ^g	0.1500	0.2187	0.2233	0.2076	0.2394
σηλ^x	0.1500	0.0518	0.0508	0.0383	0.0685
σημz	0.1500	0.0795	0.0790	0.0611	0.1020
ση*μz	0.1500	0.0587	0.0623	0.0533	0.0729
σητ^y	0.1500	0.4148	0.4227	0.3928	0.4588
σητ^c	0.0200	0.0127	0.0139	0.0103	0.0164
σηg	0.0200	0.0333	0.0334	0.0288	0.0378
ση π*	0.0200	0.1234	0.1252	0.1216	0.1287
ση y*	0.0200	0.0056	0.0055	0.0049	0.0062
ση r*	0.0200	0.1255	0.1242	0.1181	0.1281
ση π¯	0.0200	0.1115	0.1146	0.1117	0.1184

Source: Author’s own estimations.

Figure 1. Prior, posterior probabilities and mode generated by Dynare, Matlab. (Source: Author’s own contribution)

Figure 2. Structural shocks estimates. (Source: Author’s own contribution)

Figure 3. IRFs of variables to a positive investment shock. (Source: Author’s own contribution)

Figure 4. IRFs of variables to a positive consumption preference shock.

Figure 5. IRFs of variables to a positive domestic technological shock.