Baeurle, Gregor; Burren, Daniel - Department Volkswirtschaftlehre, Universität Bern - 2007
Chari, Kehoe and McGrattan (2007) (CKM) show that a large class of dynamic stochastic general equilibrium (DSGE) models with various frictions and shocks is observationally equivalent to a benchmark real business cycle (RBC) model with correlated "wedges" in the RBC model's first-order...