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    Nkdsge: Problems

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    David Zajicek
    This document discusses problems with NKDSGE models. It notes that: 1) The models do not converge for certain parameter values. 2) Shocks to technology and government spending do not have the expected effects on output, inflation, and other variables. 3) The models have symmetry properties that hold for both small "j" and small "l" parameters, but these properties are not consistent with economic theory.

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    Nkdsge: Problems

    Uploaded by

    David Zajicek
    9 views4 pages
    This document discusses problems with NKDSGE models. It notes that: 1) The models do not converge for certain parameter values. 2) Shocks to technology and government spending do not have the expected effects on output, inflation, and other variables. 3) The models have symmetry properties that hold for both small "j" and small "l" parameters, but these properties are not consistent with economic theory.

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    Original Title

    JEM184_Problem1

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    This document discusses problems with NKDSGE models. It notes that: 1) The models do not converge for certain parameter values. 2) Shocks to technology and government spending do not have the expected effects on output, inflation, and other variables. 3) The models have symmetry properties that hold for both small "j" and small "l" parameters, but these properties are not consistent with economic theory.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    9 views4 pages

    Nkdsge: Problems

    Uploaded by

    David Zajicek
    This document discusses problems with NKDSGE models. It notes that: 1) The models do not converge for certain parameter values. 2) Shocks to technology and government spending do not have the expected effects on output, inflation, and other variables. 3) The models have symmetry properties that hold for both small "j" and small "l" parameters, but these properties are not consistent with economic theory.

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    © All Rights Reserved
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    of 4

    NKDSGE PROBLEMS

    VINOGRADOV, TOLSTOGUZOVA , ZAJICEK


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