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- W1503892783 abstract "In this paper we study the e®ects of nonlinearities on the forecast- ing performance of a dynamic stochastic general equilibrium model. We compute ¯rst and second-order approximations to a New Keyne- sian monetary model, and use arti¯cial data to estimate the model's structural parameters based on its linear and quadratic solution. We and that, although our model in not far from being linear, the fore- casting performance improves by capturing the second-order terms in the solution. Our ¯ndings suggest that accounting for nonlinearities will improve the predictive abilities of DSGE models in many appli- cations." @default.
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- W1503892783 date "2007-03-01" @default.
- W1503892783 modified "2023-09-27" @default.
- W1503892783 title "Forecasting with estimated dynamic stochastic general equilibrium models: The role of nonlinearities" @default.
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