) we provide a general method for Bayesian likelihood estimation of BLE, (3) we estimate the baseline NK model based on U …

Keynesian model and develop an estimation methodology for the canonical Smets and Wouters (2007) model. A horse race between … account in the estimation. As a policy application, we show that optimal Taylor rules under AR(1) expectations inherit history …

estimation-based. We conduct several simulations comparing the accuracy of the initial estimates provided by these methods and … how they affect the accuracy of other estimated model parameters. We find evidence against their joint estimation with … attenuated by penalizing the variance of estimation errors. Even so, the joint estimation of learning initials with other model …