Cole, Stephen J.; Milani, Fabio - 2016
surveys. To explain the joint evolution of realized variables and expectations, we adopt a DSGE-VAR approach, which allows us … which the cross-equation restrictions are dogmatically imposed, on the other side. Moreover, the DSGE-VAR approach allows us … show that they can go some way toward reconciling the New Keynesian model with the data. Intermediate DSGE-VAR models …