Dealing with Misspecification in DSGE Models: A Survey

Alessia Paccagnini

MPRA Paper from University Library of Munich, Germany

Abstract: Dynamic Stochastic General Equilibrium (DSGE) models are the main tool used in Academia and in Central Banks to evaluate the business cycle for policy and forecasting analyses. Despite the recent advances in improving the fit of DSGE models to the data, the misspecification issue still remains. The aim of this survey is to shed light on the different forms of misspecification in DSGE modeling and how the researcher can identify the sources. In addition, some remedies to face with misspecification are discussed.

Keywords: DSGE Models; Misspecification; Estimation; Bayesian Estimation (search for similar items in EconPapers)
JEL-codes: C1 C11 C5 E0 E5 E50 E58 E60 (search for similar items in EconPapers)
Date: 2017-11-24
New Economics Papers: this item is included in nep-dge, nep-ecm and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:82914

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