Onatski, Alexei; Williams, Noah - In: Journal of Applied Econometrics 25 (2010) 1, pp. 145-176
In this paper we consider the implications of a fully specified dynamic general equilibrium model, developed by Smets and Wouters (2003). This is a relatively large-scale forward-looking model, which was shown to provide a good fit to the data. We show that systematically accounting for prior...
