• AEA
  • About the AEA
  • Committees
  • Honors & Awards
  • For Graduate Students
  • For Undergrad Students
  • News & Notes
  • Officers
  • General Information
  • Minutes
  • UA Questionnaire
  • Continuing Education
  • Directory of Members
  • Call for Papers
  • Media
• Journals
  • AEJ: Applied Economics
  • AEJ: Economic Policy
  • AEJ: Macroeconomics
  • AEJ: Microeconomics
  • American Economic Review
  • Journal of Economic Literature
  • Journal of Economic Perspectives
  • eTOCs
  • Virtual Field Journals
  • Institutional Subscriptions
  • AEA Journals on JSTOR
  • Ads in Journals
  • Back Issues Order Forms
  • Copyright & Permissions
• Annual Meeting
  • Submissions
  • Registration/Housing
  • Preliminary Program
  • ASSA 2013 App
  • Annual Meeting Papers
  • Annual Meeting Webcasts
  • Disclosure Code Information
  • Exhibitors
  • Exhibitors & Advertisers Forms
  • Special Event Form
  • Continuing Education
  • Econ-Harmony
  • Archive of Past Programs
• EconLit
  • EconLit Access
  • EconLit Deskop Link
  • EconLit for Members
  • JEL Codes Guide
  • JEL Classifications
  • Journal List
  • Contacts/Corrections
  • Upcoming Exhibits
  • Document Types
  • Search Hints
• Jobs
  • JOE Listings
  • Submit a JOE Listing
  • Job Market Signaling
  • Job Market Scramble
  • Available Retired Faculty
• Resources
  • Resources For Economists
  • RFE Abridged Contents
  • RFE Search
  • RFE Conferences
  • Econ Search Engine
• Members
  • Member Login
  • Become a Member
  • Directory of Members
  • EconLit for Members
  • AEA Journals on JSTOR
  • Econ-Harmony
  • Annual Meeting Webcasts
  • Browse JEL Indexes
  • Virtual Field Journals
  • Institutional Subscriptions

View Settings

This setting lets you change the way you view articles. You can choose to have articles open in a dialog window, a new tab, or directly in the same window.

Open in Dialog
Open in New Tab
Open in same window

American Economic Review: Vol. 99 No. 4 (September 2009)

AER Volume. 99, Issue 4 | Previous ArticleNext Article

Expand

Quick Tools:

Print Article Summary Email Link to this Article

To Email:

From Email:

Message:

Email Link to Article Change Captcha Export Citation

BibTeX EndNote Refer/BibIX RIS Tab-Delimited Export Sign up for Email Alerts Follow us on Twitter

Explore:

AER - All Issues

AER Forthcoming Articles

Monetary Policy Analysis with Potentially Misspecified Models

Article Citation

Del Negro, Marco, and Frank Schorfheide. 2009. "Monetary Policy Analysis with Potentially Misspecified Models." American Economic Review, 99(4): 1415-50.

DOI: 10.1257/aer.99.4.1415

Abstract

Policy analysis with potentially misspecified dynamic stochastic general equilibrium (DSGE) models faces two challenges: estimation of parameters that are relevant for policy trade-offs, and treatment of the deviations from the cross-equation restrictions. Using post-1982 US data, we study the robustness of the policy prescriptions from a state-of-the-art DSGE model with respect to two approaches to model misspecification pursued in the recent literature: (i) adding shocks to the DSGE model and/or generalizing the processes followed by these shocks; and (ii) explicit modeling of deviations from cross-equation restrictions (DSGE-VAR). (JEL C51, E13, E43, E52, E58)

Article Full-Text Access

Full-text Article

Additional Materials

Download Data Set (1.89 MB) | Online Appendix (165.60 KB)

Authors

Del Negro, Marco (Federal Reserve Bank of New York)
Schorfheide, Frank (U PA)

JEL Classifications

C51: Model Construction and Estimation
E13: General Aggregative Models: Neoclassical
E43: Determination of Interest Rates; Term Structure of Interest Rates
E52: Monetary Policy
E58: Central Banks and Their Policies