There has been a call for caution with the standard procedure for Bayesian inference in set-identified structural vector autoregressions on the grounds that the common practice of using a uniform prior over the set of orthogonal matrices induces a non-uniform prior for individual impulse...

We propose an approach for Bayesian inference in \TV SVARs identified with sign restrictions. The linchpin of our approach is a class of rotation-invariant \TV SVARs in which the prior and posterior densities of any sequence of structural parameters belonging to the class are invariant to...