CFDP 2166R

Variable Mismeasurement in a Class of DSGE Models: Comment

Author(s): 

Publication Date: February 2019

Revision Date: July 2019

Pages: 9

Abstract: 

This comment points out mismeasurement of three of the variables in the DSGE model in Smets and Wouters (2007) and in models that use the Smets-Wouters model as a benchmark.  The mismeasurement appears serious enough to call into question the reliability of empirical results using these variables.

Keywords: DSGE models, Macro data

JEL Classification Codes: E12, E32, E77

JEL Classification Codes: E12E32

See CFDP Version(s): CFDP 2166