Interpretation in nonlinear regression models that include sets of dummy variables representing categories of underlying categorical variables is not straightforward. Partial effects giving the differences between each category and the reference category are routinely computed in the empirical...

Many macroeconometric models are built to understand business cycles. However, the methods applied to assess them are rarely of the form that one learns whether they provide a good explanation of cycle characteristics. In this paper we review and apply techniques that do this for models with...