Document Type
Discussion Paper
Publication Date
2-1-2019
CFDP Number
2166
CFDP Pages
9
Journal of Economic Literature (JEL) Code(s)
E12, E32, E77
Abstract
This comment points out mismeasurement of three of the variables in the DSGE model in Del Negro, Giannoni, and Schorfheide (2015). These errors began with the model in Smets and Wouters (2007), and they also exist in other 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.
Recommended Citation
Fair, Ray C., "Inflation in the Great Recession and New Keynesian Models: Comment" (2019). Cowles Foundation Discussion Papers. 93.
https://elischolar.library.yale.edu/cowles-discussion-paper-series/93