Christoffel, Kai; Coenen, Günter; Warne, Anders - 2010
In this paper we review the methodology of forecasting with log-linearised DSGE models using Bayesian methods. We focus … nonstructural benchmarks, such as Bayesian vector autoregressions (BVARs). Overall, the empirical evidence indicates that the NAWM … BVAR can outperform the NAWM. - Bayesian inference ; DSGE models ; euro area ; forecasting ; open-economy macroeconomics …