Negro, Marco Del; Hasegawa, Raiden B.; Schorfheide, Frank - Department of Economics, University of Pennsylvania - 2014
could have used a dynamic pools to perform a counterfactual exercise (responding to the gap in labor market conditions) in … for output growth and inflation from 1992 to 2011. We find strong evidence of time variation in the pool's weights …, reflecting the fact that the DSGE model with financial frictions produces superior forecasts in periods of financial distress but …