Financial Frictions, Aggregation, and the Lucas Critique
Sun-Bin Kim (),
Frank Schorfheide () and
Yongsung Chang ()
No 31, 2010 Meeting Papers from Society for Economic Dynamics
agent model; (ii) taste and technology parameters in the DSGE model are not policy invariant; (iii) fiscal policy predictions from the DSGE model are inaccurate.
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