Working Paper: NBER ID: w21862
Authors: Jess Fernández-Villaverde; Juan F. Rubio-Ramirez; Frank Schorfheide
Abstract: This paper provides an overview of solution and estimation techniques for dynamic stochastic general equilibrium (DSGE) models. We cover the foundations of numerical approximation techniques as well as statistical inference and survey the latest developments in the field.
Keywords: DSGE Models; Estimation Techniques; Solution Methods; Macroeconomic Analysis
JEL Codes: C11; C13; C32; C52; C61; C63; E32; E52
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| numerical approximation techniques (C60) | accuracy of DSGE models (E13) |
| accuracy of DSGE models (E13) | policy recommendations (D78) |
| solution and estimation methods (C13) | theoretical coherence of empirical models (C20) |
| theoretical coherence of empirical models (C20) | predictive power over macroeconomic time series (E17) |
| adoption of outlined methods (C90) | robustness of policy analysis (D78) |