Variable Mismeasurement in a Class of DSGE Models: Comment

9 Pages Posted: 7 Aug 2019

See all articles by Ray C. Fair

Ray C. Fair

Yale University - Cowles Foundation; Yale School of Management - International Center for Finance

Date Written: July 31, 2019

Abstract

This comment points out mismeasurement of three of the variables in the DSGE model in Smets and Wouters (2007) and in models that use the Smets-Wouters model as a benchmark. The mismeasurement appears serious enough to call into question the reliability of empirical results using these variables.

Keywords: DSGE models, Macro data

JEL Classification: E12, E32, E77

Suggested Citation

Fair, Ray C., Variable Mismeasurement in a Class of DSGE Models: Comment (July 31, 2019). Cowles Foundation Discussion Paper No. 2166R, July 2019. Available at SSRN: https://ssrn.com/abstract=3432661 or http://dx.doi.org/10.2139/ssrn.3432661

Ray C. Fair (Contact Author)

Yale University - Cowles Foundation ( email )

Box 208281
New Haven, CT 06520-8281
United States
203-432-3715 (Phone)
203-432-6167 (Fax)

HOME PAGE: http://fairmodel.econ.yale.edu

Yale School of Management - International Center for Finance ( email )

Box 208200
New Haven, CT 06520
United States
203-432-3715 (Phone)
203-432-6167 (Fax)

HOME PAGE: http://fairmodel.econ.yale.edu

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