Sensitivity analysis for a dynamic macroeconomic policy game in a monetary union
Dmitri Blueschke,
Viktoria Blueschke-Nikolaeva,
Reinhard Neck
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 r… Show more
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