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A method to evaluate cyclical models which does not require knowledge of the DGP and the exact specification of the aggregate decision rules is proposed. We derive robust restrictions in a class of models; use some to identify structural shocks in the data and others to evaluate the class or...
Persistent link: https://www.econbiz.de/10009001058
Robust control allows policymakers to formulate policies that guard against model misspecification. The principal tools …
Persistent link: https://www.econbiz.de/10005791660