Showing 1 - 10 of 83
It is sometimes argued that central banks influence the private economy in the short run through controlling a specific component of high powered money, not its total amount. Using a structural VAR approach, this paper evaluates this claim empirically, in the context of the Japanese economy. It...
Persistent link: https://www.econbiz.de/10005789026
We investigate identification issues in DSGE models and their consequences for parameter estimation and model … equivalence, partial and weak identification problems are widespread and typically produced by an ill-behaved mapping between the … structural parameters and the coefficients of the solution. Different objective functions affect identification and small samples …
Persistent link: https://www.econbiz.de/10004990850
Switzerland, traditionally a ‘zero unemployment’ economy, has seen an unprecedented rise in joblessness in the 1990s although unemployment fell again to a rather low level after 1997. This Paper tests whether Switzerland experienced a negative relative net demand shock against the low...
Persistent link: https://www.econbiz.de/10005114278
practice has required an act of faith in the empirical plausibility of the delay restriction used for identification. An … identification. …
Persistent link: https://www.econbiz.de/10005114377
of this literature. It focuses on alternative approaches to the identification of structural shocks within the framework …
Persistent link: https://www.econbiz.de/10009201117
Equilibrium business cycle models have typically less shocks than variables. As pointed out by Altug, 1989, and Sargent, 1989, if variables are measured with error, this characteristic implies that the model solution for measured variables has a factor structure. This Paper compares estimation...
Persistent link: https://www.econbiz.de/10005504708
treatment effect itself, and we prove non-parametric identification. The data cover the population and include multiple …
Persistent link: https://www.econbiz.de/10005661564
identification problems due, in large part, to the nature of DSGE models. The problems can be patched up in a number of ways, but …
Persistent link: https://www.econbiz.de/10005662393
This paper asks two questions. First, can we detect empirically whether the shocks recovered from the estimates of a structural VAR are truly structural? Second, can the problem of non-fundamentalness be solved by considering additional information? The answer to the first question is 'yes' and...
Persistent link: https://www.econbiz.de/10005666465
A number of authors have attempted to test whether the US economy is in a determinate or an indeterminate equilibrium. We argue that to answer this question, one must impose a priori restrictions on lag length that cannot be tested. We provide examples of two economic models. Model 1 displays an...
Persistent link: https://www.econbiz.de/10005666730