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)


Quick Tools:

Print Article Summary
Export Citation
Sign up for Email Alerts Follow us on Twitter


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


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)


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

American Economic Review

Quick Tools:

Sign up for Email Alerts

Follow us on Twitter

Subscription Information
(Institutional Administrator Access)


AER - All Issues

AER - Forthcoming Articles

Virtual Field Journals

AEA Member Login:

AEAweb | AEA Journals | Contact Us