[ Fabio Canova and Luca Sala (2009), “Back to square one: Identification issues in DSGE models”, Journal of Monetary Economics, 56(4): 431-449. ]
1. Introduction
2. A few definitions and an example
2.1. The role of the objective function
2.2. The mappings from the structural parameters to the sample objective function
2.3. The problems
2.4. Two common but problematic solutions
2.5. Summary and remedies
3. Population identification issues in a prototype DSGE model
3.1. The model
3.2. Some graphical evidence
3.3. The size of the weak identification region
3.4. Summary
4. Identification and the sample objective function
4.1. The results
4.2. Are there alternatives?
4.3. Conclusion
5. Detecting the source of the problems
5.1. Theoretical considerations
5.2. Practical issues
5.3. An application
6. Conclusions and practical suggestions
1. Introduction
2. A few definitions and an example
2.1. The role of the objective function
2.2. The mappings from the structural parameters to the sample objective function
2.3. The problems
2.4. Two common but problematic solutions
2.5. Summary and remedies
3. Population identification issues in a prototype DSGE model
3.1. The model
3.2. Some graphical evidence
3.3. The size of the weak identification region
3.4. Summary
4. Identification and the sample objective function
4.1. The results
4.2. Are there alternatives?
4.3. Conclusion
5. Detecting the source of the problems
5.1. Theoretical considerations
5.2. Practical issues
5.3. An application
6. Conclusions and practical suggestions
(2024.06.09.)
