Negro, Marco Del; Schorfheide, Frank - In: Economic Review (2003) Q4, pp. 35-50
During the past two decades, dynamic stochastic general equilibrium (DSGE) models have taken center stage in academic macroeconomics. Nonetheless, these models are still rarely used in policy-making and forecasting. ; This article describes the workings of the DSGE-VAR, a procedure that combines...