Our discussion is structured by three concerns - model design, matching the data and operational requirements. The paper begins with a general discussion of the structure of dynamic stochastic general equilibrium (DSGE) models where we investigate issues like (i) the type of restrictions being...

Pesaran and Smith (2011) concluded that DSGE models were sometimes a straitjacket which hampered the ability to match certain features of the data. In this paper we look at how one might assess the fit of these models using a variety of measures, rather than what seems to be an increasingly...

We describe methods for assessing estimated Dynamic Stochastic General Equilibrium (DSGE) models. One involves the computation of alternative impulse responses from models constrained to have an identical likelihood and the same contemporaneous signs as responses in the DSGE model. Others ask...