Download This PaperSmets-Wouters’ Lazy Derivation for DSGE
5 Pages Posted: 27 Jun 2015 Last revised: 29 Jun 2015
Date Written: June 24, 2015
Abstract
This paper invokes Fisher (1907) to teach Smets and Wouters (2003) how to work out the consumption solution for their DSGE model. When they have simply used the marginal condition for estimation, they are too lazy. When the solution is worked out, DSGE reduces to a steady-state growth model, without growth.
Keywords: DSGE
JEL Classification: D58
Suggested Citation: Suggested Citation
Choi, Hak, Smets-Wouters’ Lazy Derivation for DSGE (June 24, 2015). Available at SSRN: https://ssrn.com/abstract=2622839 or http://dx.doi.org/10.2139/ssrn.2622839
Do you have a job opening that you would like to promote on SSRN?
Feedback
Feedback to SSRN