Identification in Macroeconomics

@article{Nakamura2018IdentificationIM,
  title={Identification in Macroeconomics},
  author={Emi Nakamura and J{\'o}n Bjarni Steinsson},
  journal={Comparative Political Economy: Fiscal Policy eJournal},
  year={2018}
}
This paper discusses empirical approaches macroeconomists use to answer questions like: What does monetary policy do? How large are the effects of fiscal stimulus? What caused the Great Recession? Why do some countries grow faster than others? Identification of causal effects plays two roles in this process. In certain cases, progress can be made using the direct approach of identifying plausibly exogenous variation in a policy and using this variation to assess the effect of the policy… Expand
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