Variable Mismeasurement in a Class of DSGE Models: Comment
9 Pages Posted: 7 Aug 2019
Date Written: July 31, 2019
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: Suggested Citation