Kano, Takashi; Nason, James Michael - 2009
transmission. Simulation experiments show that internal consumption habit often improves
NKDSGE model fit to output and … transitory output and
consumption growth SDs.
This paper employs Bayesian calibration and simulation methods to study NKDSGE …; "; :
Before computingS Y; ! , we truncate its polynomial at j 40, a ten year horizon.
3.3 Bayesian simulation methods
We use MCMC …