Policy predictions if the model doesn't fit

Policy predictions if the model doesn't fit

by Marco Del Negro

Part of Working paper series / Federal Reserve Bank of Atlanta ;

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"This paper uses a novel method for conducting policy analysis with potentially misspecified DSGE models (Del Negro and Schorfheide 2004) and applies it to a simple New Keynesian DSGE model. We illustrate the sensitivity of the results to assumptions on the policy invariance of model misspecifications"--Federal Reserve Bank of Atlanta web site.

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