RUGE-MURCIA, Francisco J. - Centre Interuniversitaire de Recherche en Économie … - 2003
This paper employs the one-sector Real Business Cycle model as a testing ground for four different procedures to estimate Dynamic Stochastic General Equilibrium (DSGE) models. The procedures are: 1) Maximum Likelihood, with and without measurement errors and incorporating Bayesian priors, 2)...