Dr David Meenagh

Research interests

- Macroeconomics
- Macroeconometrics

Selected publications

How much nominal rigidity is there in the US economy? Testing a New Keynesian DSGE Model using indirect inference. Forthcoming in Journal of Economic Dynamics and Control., with Vo Phuong Mai Le, Patrick Minford and Michael Wickens. See also Supporting Annex.
Real Exchange Rate Overshooting RBC Style. Journal of International Money and Finance, 29(6), pp. 1131-1150, October 2010, with Patrick Minford, Prakriti Sofat and Eric Nowell.
Two Orthogonal Continents: Testing a Two-Country DSGE Model of the US and EU Using Indirect Inference. Open Economies Review, 21(1), pp. 23-44, February 2010, with Vo Phuong Mai Le, Patrick Minford and Michael Wickens.
Testing a DSGE Model of the EU Using Indirect Inference. Open Economies Review, 20(4), pp. 435-471, September 2009, with Patrick Minford and Michael Wickens.
Can the facts of UK inflation persistence be explained by nominal rigidity?. Economic Modelling, 26(5), pp. 978-992, September 2009, with Patrick Minford, Eric Nowell, Prakriti Sofat and Naveen Srinivasan.
Testing a Model of the UK by the Method of Indirect Inference. Open Economies Review, 20(2), pp. 265-291, April 2009, with Patrick Minford and Konstantinos Theodoridis.
Simulating Stock Returns Under Regimes - A New Test of Market Efficiency. Economics Letters, 94(2), pp. 235-239, February 2007. With Patrick Minford and David Peel.

Britain
and EMU: Assessing the Costs in Macroeconomic Variability. The World
Economy 27 (3), March 2004, 301-358. With Patrick Minford and Bruce
Webb.

Working Papers
Growth and relative living standards - testing Barriers to Riches on post-war panel data, with Patrick Minford
and Jiang Wang --->

Monetary
regimes: is there a trade-off between consumption and employment variability? With Kent Matthews, Patrick Minford and Bruce Webb. --->
Real
Exchange Rate Overshooting RBC Style. With Patrick Minford, Prakriti
Sofat and Eric Nowell.
The objective of this paper is to establish the ability of a Real Business Cycle model to account for the behaviour of the real exchange rate (RXR), using UK experience as our empirical focus. We specify a dynamic general equilibrium open economy model based on optimising decisions of rational agents; the first order conditions from the households. and firms' optimisation problems are used to derive the behavioural equations of the model. As we model the UK, a medium-sized open economy, we take the world economy as given. We keep the model in its non- linear form and hence solve it numerically. The interaction with the rest of the world comes in the form of uncovered real interest rate parity and current account both of which are explicitly micro-founded. The paper discusses simulation results of a 1 percent productivity shock, which shows clearly that on impact RXR appreciates and then goes back to a new depreciated equilibrium, producing a business cycle. This deterministic simulation is very encouraging to the idea that the behaviour of RXR may be explicable within an RBC context. Ultimately to test whether our model is consistent with the facts, we bootstrap our model to generate pseudo RXR series and check if the ARIMA parameters estimated for the data lie within 95% confidence limits implied by our model. We find that our model tells quite a good story, the gyrations of the RXR can be explained within an RBC framework.--->