Estimating a small DSGE model under rational and measured expectations: some comparisons

  • Maritta Paloviita, Suomen Pankin, keskustelualoitteita
  • Published 2005


Using European panel data and GMM system estimation, we explore the empirical performance of the standard three-equation New Keynesian macro model under different informational assumptions. As a benchmark, we consider the performance of the model under rational expectations and revised (final) data. Alternatively, instead of imposing rational expectations… (More)


8 Figures and Tables