Gottschalk, Jan; Zandweghe, Willem Van - In: Swiss Journal of Economics and Statistics (SJES) 139 (2003) I, pp. 55-81
Bivariate SVAR models employing long-run identifying restrictions are popular tools to investigate the source of business cycle fluctuations. Their advantage is the simplicity in use and interpretation. However, their low dimension may also lead to a failure of the identification procedure, with...