NORA belongs to the class of small open economy DSGE models. The economy described by this model is assumed to have strong trade and financial linkages with the rest of the world, but is sufficiently small to not affect the world economy itself. Shocks to foreign variables are transmitted to the domestic economy through movements in the real exchange rate, the return on foreign bonds and the demand for exports. Consistent with most analysis of the Norwegian economy NORA focuses on developments in the mainland economy, i.e. excluding the off-shore oil sector. The production and taxation of the off-shore oil sector is not modeled. However, we include interlinkages between the off-shore oil sector and the mainland economy in the form of the oil sector's demand for domestically-produced investment goods.
Head: Håkon Tretvoll
Participants:
- Julia Skretting
- Geir Bjertnæs
- Thomas Størdal Gundersen
- Marek Jasinski
Previous participants:
- Thor Andreas Aursland, Norges bank
- Ivan Frankovic, Bundesbank
- Birol Kanik, Konjunkturinstitutet
- Magnus Saxegaard, IMF
Funder: Ministry of Finance
Publications
Documentation of the model:
Aursland, T. A., I. Frankovic, B. Kanik and M. Saxegaard (2020): State-dependent Fiscal Multipliers in NORA - A DSGE Model for Fiscal Policy Analysis in Norway, Economic Modelling
Research and analysis
Brasch, T., I. Frankovic and E. Tölö (2022): Corporate taxes and investment when firms are internationally mobile. International Tax and Public Finance