Variable Mismeasurement in a Class of DSGE Models: Comment

Fair, Ray C.

doi:10.2139/ssrn.3656323

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Variable Mismeasurement in a Class of DSGE Models: Comment

Cowles Foundation Discussion Paper 2166R2

12 Pages Posted: 21 Jul 2020 Last revised: 22 Jul 2020

See all articles by Ray C. Fair

Ray C. Fair

Yale University - Cowles Foundation; Yale School of Management - International Center for Finance

There are 2 versions of this paper

Date Written: July 20, 2020

Abstract

This comment points out mismeasurement of variables in the DSGE model in Smets and Wouters (2007) and in models that follow the Smets-Wouters measurement procedures. The mismeasurement errors appear to be large.

Keywords: DSGE models, Macro data

JEL Classification: E12, E32, E77

Suggested Citation: Suggested Citation

Fair, Ray C., Variable Mismeasurement in a Class of DSGE Models: Comment (July 20, 2020). Cowles Foundation Discussion Paper 2166R2, Available at SSRN: https://ssrn.com/abstract=3656323 or http://dx.doi.org/10.2139/ssrn.3656323