This paper develops a new and easily implementable necessary and sufficient condition for the exact identification of a Markov-switching SVAR model. The theorem applies to models with both linear and some nonlinear restrictions on the structural parameters. We also derive efficient MCMC...

We study why fluctuations of the real exchange rate are so volatile with respect to other macroeconomic variables for latin american economies. We use a Bayesian approach to estimate a two-country New Keynesian Open Economy Macroeconomics using data for several latin american economies, and...