Corpus ID: 116906146

A State Space Approach To The Policymaker's Data Uncertainty Problem

  title={A State Space Approach To The Policymaker's Data Uncertainty Problem},
  author={Alastair Cunningham and Christopher Jeffery and George Kapetanios and Vincent Labhard},
The paper describes the challenges that uncertainty over the true value of key macroeconomic variables poses for policymakers and the way in which they may form and update their priors in light of a range of indicators. SpeciÂ…cally, it casts the data uncertainty challenge in state space form and illustrates - in this setting - how the policymakerÂ’s data uncertainty problem is related to any constraints that an optimising statistical agency might face in resolving its own data uncertainty… Expand

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