Negro, Marco Del; Schorfheide, Frank; Smets, Frank; … - Federal Reserve Bank of Atlanta - 2004
The paper provides new tools for the evaluation of DSGE models and applies them to a large-scale New Keynesian dynamic stochastic general equilibrium (DSGE) model with price and wage stickiness and capital accumulation. Specifically, we approximate the DSGE model by a vector autoregression (VAR)...