The `local rank factorization' (lrf) of a regular matrix polynomial at an eigenvalue consists of a sequence of matrix rank factorizations of a certain function of its coecients; the lrf delivers the local Smith form and extended canonical systems of root functions that correspond to the...

This paper shows that the poor man's invertibility condition in Fernandez-Villaverde et al. (2007) is, in general, sufficient but not necessary for fundamentalness; that is, a violation of this condition does not necessarily imply the impossibility of recovering the structural shocks of a DSGE...

This paper shows that the poor man's invertibility condition in Fernández-Villaverde et al. (2007) is, in general, sufficient but not necessary for fundamentalness; that is, a violation of this condition does not necessarily imply the impossibility of recovering the structural shocks of a DSGE...

Abstract The dynamics of Spanish unemployment in the last thirty years has been characterized by a high and persistent unemployment period (from 1982 to 1999) and by two transition periods, one of massive employment destruction (from 1972 to 1982) and one of massive employment creation (from...

This paper presents necessary and sufficient conditions for the existence of common cyclical features in Vector Auto Regressive (VAR) processes integrated of order 0, 1, 2, where the common cyclical features correspond to common serial correlation (CS), commonality in the final equations (CE)...

Solutions of DSGE models are usually represented by state space forms. This note shows that if one wishes to determine whether the observables of the model admit a finite order VAR representation, minimality of the state space representation of the solution matters. More specifically, we first...

This paper discusses the notion of cointegrating space for linear processes integrated of any order. It first shows that the notions of (polynomial) cointegrating vectors and of root functions coincide. Second, it discusses how the cointegrating space can be defined (i) as a vector space of...