. We document two new facts using VAR methods. First, a (positive) shock to future TFP generates a significant decline in …, VAR methods also establish a tight link between TFP news shocks and shocks that explain the majority of un … for the propagation of news shocks. A DSGE model enriched with a financial sector generates very similar quantitative …

-based nonfundamentalness, thereby hampering shock identification via VAR methods. This notwithstanding, restricted DNK models are shown to …Recent structural VAR studies of the monetary transmission mechanism have voiced concerns about the use of recursive … feature (i) invertible equilibrium representations for the observables and (ii) fast-converging VAR coefficient matrices under …

the leading shock candidates can explain fluctuations in output and hours. It concludes that we are much closer to …

One of the leading methods of estimating the structural parameters of DSGE models is the VAR-based impulse response … matching estimator. The existing asymptotic theory for this estimator does not cover situations in which the number of impulse … response parameters exceeds the number of VAR model parameters. Situations in which this order condition is violated arise …

Monetary DSGE models are widely used because they fit the data well and they can be used to address important monetary … policy questions. We provide a selective review of these developments. Policy analysis with DSGE models requires using data …