News shocks or parametric indeterminacy? An observational equivalence result in linear rational expectations models

C-Tier
Journal: Economics Letters
Year: 2012
Volume: 114
Issue: 2
Pages: 198-200

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper studies identification in linear rational expectations models with news shocks. We show that news-driven models and indeterminate equilibrium economies with i.i.d. fundamentals are observationally equivalent. This finding calls for carefully designing empirical investigations of news shocks in estimated DSGE models.

Technical Details

RePEc Handle
repec:eee:ecolet:v:114:y:2012:i:2:p:198-200
Journal Field
General
Author Count
1
Added to Database
2026-01-29