Gumbau-Brisa, Fabià; Lie, Denny; Olivei, Giovanni P. - School of Economics, Faculty of Arts and Social Sciences - 2011
In their 2010 comment (which we refer to as CS10), Cogley and Sbordone argue that: (i) our estimates are not entirely closed form, and hence are arbitrary; (ii) we cannot guarantee that our estimates are valid, while their estimates (Cogley and Sbordone 2008, henceforth CS08) always are; and...