Carroll, Chris (contributor); Slacalek, Jirka (contributor); … - 2008
The state-space representation (7){(8) ts nicely into the structural DSGE
framework recently proposed by Ireland (2004 … be solved in terms of state variables st and residuals ut:
ft = Cst + ut: (9)
Ireland, p. 1210 views the disturbances ut … stripped-
down version of Ireland’s model with consumption habits in which measured
consumption is a ected by a combination of …