Franchi, Massimo; Paruolo, Paolo - Rimini Centre for Economic Analysis (RCEA) - 2012
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...