Franke, Reiner; Jang, Tae-Seok; Sacht, Stephen - In: The North American Journal of Economics and Finance 31 (2015) C, pp. 126-154
The paper considers an elementary New-Keynesian three-equation model and compares its Bayesian estimation based on conventional priors to the results from the method of moments (MM), which seeks to match a finite set of the model-generated second moments of inflation, output and the interest...