Fève, Patrick; Guay, Alain - Centre Interuniversitaire sur le Risque, les Politiques … - 2007
The usefulness of SVARs for developing empirically plausible models is actually subject to many controversies in … quantitative macroeconomics. In this paper, we propose a simple alternative two step SVARs based procedure which consistently … business cycle model show that our approach outperforms standard SVARs. The two step procedure, when applied to actual data …