Policy predictions if the model doesn’t fit

This paper uses a novel method for conducting policy analysis with potentially misspecified DSGE models (Del Negro and Schorfheide 2004) and applies it to a simple New Keynesian DSGE model. We illustrate the sensitivity of the results to assumptions on the policy invariance of model misspecifications.

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Year of publication:	2004
Authors:	Negro, Marco Del ; Schorfheide, Frank
Institutions:	Federal Reserve Bank of Atlanta

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Extent:	application/pdf
Series:	Working Paper.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Number 2004-38
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005401973