Bukhari, Adnan Haider; Khan, Safdar Ullah - In: The Pakistan Development Review 47 (2008) 4, pp. 963-1008
This paper estimates a small open economy Dynamic Stochastic General Equilibrium (DSGE) model for Pakistan using Bayesian simulation approach. Model setup is based on new Keynesian framework, characterised by nominal rigidity in prices with habit formation in household’s consumption. The core...