Energy price shocks in dynamic stochastic general equilibrium : the case of Bangladesh.ud

摘要

We investigate the role of energy price shocks on business cycle fl uctuations in Bangladesh. In doingudso, we calibrate a Dynamic Stochastic General Equilibrium (DSGE) model, allowing for both energy consumptionudby households and as an input in production. We fi nd that qualitatively temporary energy price shocks andudtechnology shocks produce similar impulse response functions, as well as similar (quantitatively) autocorrelationsudin aggregate quantities. The variance in aggregate quantities are better explained by technologyudshocks than by energy price shocks, suggesting that technology shocks are more important source of fl uctuationsudin Bangladesh.