This paper proposes a solution method to solve linear difference models with lagged expectations. Variables with lagged expectations expand the model's state space greatly when N is large; and getting the system into a canonical form solvable by the traditional methods involves substantial manual...

Regional Economic Summit, Evansville, Ind., Nov. 20, 2008

This survey paper discusses the policy implications that can be expected from the recent research on nonlinearity and chaos in economic models. Expected policy implications are interpreted as a driving force behind the recent proliferation of research in this area. In general, it appears that no...

Empirical work in macroeconomics is plagued by small sample size and large idiosyncratic variation. This problem is especially severe in the case of transition economies. We use a mixed estimation method incorporating information from OECD country data to estimate the parameters of a...

Many recent studies in macroeconomics have focused on the estimation of DSGE models using a system of loglinear approximations to the models' nonlinear equilibrium conditions. The term macroeconometric equivalence encapsulates the idea that estimates using aggregate data based on first-order...

Presentation to the National Association For Business Economics 43rd Annual Meeting, New York City - Sept. 10, 2001

Presentation to the National Association For Business Economics 43rd Annual Meeting, New York City - Sept. 10, 2001

Indiana University, Bloomington, Ind., Oct. 2, 2008

Regional Economic Summit, Evansville, Ind., Nov. 20, 2008