Franchi, Massimo; Vidotto, Anna - In: Economics Letters 120 (2013) 1, pp. 100-103
The present paper shows that a DSGE model can be represented by a finite order VAR if and only if the eigenvalues of the matrix defined in Fernández-Villaverde et al. (2007) are all equal to zero. Further it shows that this condition is equivalent to the unimodularity condition presented...