Cole, Stephen; Milani, Fabio - Department of Economics, University of California-Irvine - 2014
surveys. To explain the joint evolution of realized variables and expectations, we adopt a DSGE-VAR approach, which allows us … to estimate all models in the continuum between the extremes of an unrestricted VAR, on one side, and a DSGE model in … which the cross-equation restrictions are dogmatically imposed, on the other side. Moreover, the DSGE-VAR approach allows us …