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assessment of uncertainty in macroeconomic models. Behavioral-finance theorists have appealed to Kahneman and Tversky's findings …
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Identifiability of the parameters is an important precondition for consistent estimation of models designed to describe empirical phenomena. Nevertheless, many estimation exercises proceed without a preliminary investigation into the identifiability of its models. As a consequence, the estimates...
Persistent link: https://www.econbiz.de/10014581341
This study attempts to identify uncertainty in the long-term rate of interest based on the controversial interest rate … macroeconomic variables without interest uncertainty are thus seriously incomplete. …
Persistent link: https://www.econbiz.de/10012424659
Uncertainty about monetary policy associated with uncertainty in interest rate is an important determinant of economic … uncertainties, uncertainty related to the monetary policy of the USA may have an impact on other economies. In this study, we … conducted the Granger causality test to analyse the causality. We examined the impact of US monetary policy uncertainty on the …
Persistent link: https://www.econbiz.de/10014516194
In this paper we present a method for using rational expectations in a linear-quadratic optimizationframework. Following the approach put forward by Sims, we solve the model through a QZdecomposition, which is generally easier to implement than the more widely used method of Blanchardand Kahn.
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