This paper provides a comprehensive and systematic introduction to the Large-Scale AMRO Global Macro-Financial DSGE Model (AGMFM). It supports impulse response analysis, shock decomposition analysis, forecasting, optimal policy solving, sensitivity and identification analysis, and other in-depth, DSGE analyses for 48 economies, including the ASEAN+3. This paper describes the theoretical structure underlying the formulation of the various components of the AGMFM and the calibration or estimation of all parameters required by the model. In general, this is a large-scale DSGE model with 48 economies and 45 industries, incorporating rich microfoundations of the optimizing behavior of homogenous and heterogenous economic agents, which are subject to various imperfections and frictions. The model can be used for conducting macroeconomic, financial and policy scenarios at the global, national, and even industry levels.
Working Papers