Date: December 2020
Author: Stefán Thórarinsson.
The working paper by Stefán Thórarinsson can be accessed here: Dynimo – Version III: A DSGE model of the Icelandic economy
This handbook describes the third version of DYNIMO, the Central Bank of Iceland’s dynamic stochastic general equilibrium model. Derivations from first principles to final equations are presented. In addition, the more advanced mathematical tools needed for the derivations are stated and their validity motivated. Subsequently, we estimate the model on Icelandic data over the period 2011Q1-2019Q4. Finally, evaluation of the model’s properties is performed.