Timothy, Cogley; Takeshi, Yagihashi - In: The B.E. Journal of Macroeconomics 10 (2010) 1, pp. 1-33
Bayesian and maximum-likelihood estimates of structural parameters in DSGE approximating models are invariant to shifts in policy only when the model is correctly specified. Since DSGE models are approximations, strict invariance is unattainable. Despite that, DSGE models might be useful for...