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The anatomy of standard DSGE models with financial frictions

✍ Scribed by Brzoza-Brzezina, Michał; Kolasa, Marcin; Makarski, Krzysztof

Book ID
119294360
Publisher
Elsevier Science
Year
2013
Tongue
English
Weight
432 KB
Volume
37
Category
Article
ISSN
0165-1889

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## Abstract In this paper, we put dynamic stochastic general equilibrium DSGE forecasts in competition with factor forecasts. We focus on these two models since they represent nicely the two opposing forecasting philosophies. The DSGE model on the one hand has a strong theoretical economic backgrou