ArticleCentral European journal of operations research2024
Sensitivity analysis for a dynamic macroeconomic policy game in a monetary union.
Article in Central European journal of operations research, 2024. The graph could read no effect estimate from its abstract, so it casts no vote on the map. Not yet cited in PubMed.
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Abstract
In this paper, we examine the sensitivity of the results of an earlier paper which presented and analyzed a dynamic game model of a monetary union with coalitions between governments (fiscal policy makers) and a common central bank (monetary policy maker). Here we examine alternative values of the parameters of the underlying model to show how the earlier results depend on the numerical parameter values chosen, which were obtained by calibration instead of econometric estimation. We demonstrate that the main results are qualitatively the same as in the original model for plausible smaller and larger values of the parameters. For the few cases where they differ, we interpret the deviations in economic terms and illustrate the policies and their macroeconomic effects resulting from the change to the parameter under consideration for one of these cases.
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