Using extraneous information to analyze monetary policy in transition economies

William Gavin () and David Kemme ()

No 2004-034, Working Papers from Federal Reserve Bank of St. Louis

Abstract: Empirical work in macroeconomics is plagued by small sample size and large idiosyncratic variation. This problem is especially severe in the case of transition economies. We use a mixed estimation method incorporating information from OECD country data to estimate the parameters of a reduced-form transition economy model. An exactly identified structural VAR model is then constructed to analyze monetary policy. The OECD information increases the precision of the impulse response functions in the transition economies. The method provides a systematic way to use extraneous information to analyze monetary policy in the transition economies where data availability is limited.

Keywords: Monetary policy; Macroeconomics (search for similar items in EconPapers)
Date: 2007
New Economics Papers: this item is included in nep-cba, nep-mac and nep-tra
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Citations: View citations in EconPapers (4)

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Journal Article: Using extraneous information to analyze monetary policy in transition economies (2009)
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