Robinson, Tim - Reserve Bank of Australia - 2013
a method of using a DSGE model to inform the priors of a Bayesian VAR. The resulting BVAR-DSGE model partially relaxes … identifying the empirical BVAR-DSGE using information from the DSGE model. These methods are demonstrated using the Justiniano and … Preston (2010a) DSGE model. Compared to the DSGE model, the empirical BVAR-DSGE model estimates that there is a larger role …