DSGE models in macroeconomics : estimation, evaluation, and new development

Abstract

This volume of Advances in Econometrics is devoted to dynamic stochastic general equilibrium (DSGE) models. The editors (of Southern Methodist U., the U. of California, and the Federal Reserve Bank of Dallas in the US; and U. Pompeu Fabra in Spain) present ten chapters in two parts. The first covers topics in DSGE modeling and estimation practice, including the modeling and role of expectations, the study of alternative pricing models, the possible weak identification in new open economy macro models, and the modeling of trend inflation. The second is devoted to innovations in econometric methodology, including new techniques for addressing key theoretical and inferential problems. It includes discussion of applications of Laplace-type, frequency domain, empirical likelihood, and method of moment estimators.