Working Paper: An Estimated DSGE model for Denmark with Housing, Banking, and Financial Frictions

Authors Pedersen, Jesper
Subject Financial institutions; Economic activity and employment; Models
Type Working paper
Year 2016
Published 3 October 2016
The financial crisis has moved attention to the modeling of financial frictions and banks in DSGE models. The preceding housing boom put focus on the need to incorporate developments in the residential sector, including house prices. This paper documents an estimated DSGE model of the Danish economy with financial frictions, banking and a construction sector.