Kim, Chang-Jin; Morley, James; Piger, Jeremy - In: Journal of Applied Econometrics 23 (2008) 2, pp. 173-191
We use counterfactual experiments to investigate the sources of the large volatility reduction in US real GDP growth in the 1980s. Contrary to an existing literature that conducts counterfactual experiments based on classical estimation and point estimates, we consider Bayesian analysis that...