This paper reviews Bayesian methods that have been developed in recent years to estimate
and evaluate dynamic stochastic general equilibrium (DSGE) models. We consider the …

Abstract The Great Recession seems to be a natural experiment for economic analysis, in
that it has shown the inadequacy of the predominant theoretical framework-the New …

This work nests the Agent-Based macroeconomic perspective into the earlier history of
macroeconomics. We discuss how the discipline in the 70's took a perverse path relying on …

Purely forward-looking versions of the New Keynesian Phillips curve (NKPC) generate too
little inflation persistence. Some authors add ad hoc backward-looking terms to address this …

We estimate a small-scale, structural general equilibrium model of a small open economy
using Bayesian methods. Our main focus is the conduct of monetary policy in Australia …

We investigate identification issues in DSGE models and their consequences for parameter
estimation and model evaluation when the objective function measures the distance …

The new-Keynesian, Taylor rule theory of inflation determination relies on explosive
dynamics. By raising interest rates in response to inflation, the Fed induces ever-larger …

The issue of identification arises whenever structural models are estimated. Lack of
identification means that the empirical implications of some model parameters are either …

This paper develops a small-scale two-country model following the new open economy
macroeconomics paradigm. Under autarky, the model specializes to the familiar three …

This paper explores optimal policy design in an estimated model of three small open
economies: Australia, Canada and New Zealand. Within a class of generalized Taylor rules …