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- W1945533287 abstract "This paper studies how stable over time are the so-called structural of dynamic stochastic general equilibrium (DSGE) models. To answer this question, we estimate a medium-scale DSGE model with real and nominal rigidities using U.S. data. In our model, we allow for parameter drifting and rational expectations of the agents with respect to this drift. We document that there is strong evidence that parameters change within our sample. We illustrate variations in the parameters describing the monetary policy reaction function and in the parameters characterizing the pricing behavior of firms and households. Moreover, we show how the movements in the pricing parameters are correlated with inflation. Thus, our results cast doubts on the empirical relevance of Calvo models." @default.
- W1945533287 created "2016-06-24" @default.
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- W1945533287 date "2007-06-01" @default.
- W1945533287 modified "2023-09-23" @default.
- W1945533287 title "HOW STRUCTURAL ARE STRUCTURAL PARAMETERS" @default.
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