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- W2955754503 abstract "We propose a method for solving and estimating linear rational expectations models that exhibit indeterminacy and we provide step-by-step guidelines for implementing this method in the Matlab-based packages Dynare and Gensys. Our method redefines a subset of expectational errors as new fundamentals. This redefinition allows us to treat indeterminate models as determinate and to apply standard solution algorithms. We provide a selection method, based on Bayesian model comparison, to decide which errors to pick as fundamental and we present simulation results to show how our procedure works in practice." @default.
- W2955754503 created "2019-07-12" @default.
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- W2955754503 date "2013-01-01" @default.
- W2955754503 modified "2023-09-24" @default.
- W2955754503 title "Solving and Estimating Indeterminate DSGE Models" @default.
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- W2955754503 doi "https://doi.org/10.5089/9781475589214.001" @default.
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