Policy Predictions If the Model Does Not Fit

This paper uses a novel method for conducting policy analysis with potentially misspecified DSGE models and applies it to a simple New Keynesian DSGE model. We illustrate the sensitivity of the results to assumptions on the policy invariance of model misspecifications.

Gespeichert in:

Bibliographische Detailangaben
Veröffentlicht in:	Journal of the European Economic Association 2005-04, Vol.3 (2/3), p.434-443
Hauptverfasser:	Del Negro, Marco, Schorfheide, Frank
Format:	Artikel
Sprache:	eng
Schlagworte:	Economic models Economic policy Empirical Models for Monetary Policy Forecasts Inflation rates Interest rates Keynesianism Macroeconomic modeling Modeling Musical intervals Neokeynesianism Parametric models Policy analysis Vector autoregression
Online-Zugang:	Volltext
Tags:	Tag hinzufügen Keine Tags, Fügen Sie den ersten Tag hinzu!

Beschreibung
Zusammenfassung:	This paper uses a novel method for conducting policy analysis with potentially misspecified DSGE models and applies it to a simple New Keynesian DSGE model. We illustrate the sensitivity of the results to assumptions on the policy invariance of model misspecifications.
ISSN:	1542-4766 1542-4774
DOI:	10.1162/1542476054472928