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McKay and Wolf 2023 1770256304 by David Nefzi is a document available to read on EtoBox.
What is McKay and Wolf 2023 1770256304 about?
The document discusses the use of time-series regressions to analyze policy counterfactuals, emphasizing the importance of policy rules in macroeconomic predictions. McKay and Wolf propose a method to synthesize counterfactual policy rules by incorporating specific shocks to a baseline rule, thereby addressing the Lucas critique. Their approach allows for robust identification of how the economy would behave under different policy rules, contingent on understanding the impulse responses of shocks.
- Author
- David Nefzi
- Language
- EN