economic meaning of structural shocks
Posted: Thu Apr 27, 2017 3:33 pm
Dear Johannes,
First thank you very much for your previous help and guidance. I am grateful.
Regarding my previous DSGE model with 24 structural variables, when I presented the paper, some people that all my 24 structural shocks need to have economic meaning. I am very confused, I have defined the meaning of the structural shocks through the specification of the DSGE model, why my paper still lacks economic interpretation of DSGE structural shocks? Does it mean that each structural shock needs to appear in a minimum number of equations?
Thank you and look forward to hearing from you.
Best,
Jesse
First thank you very much for your previous help and guidance. I am grateful.
Regarding my previous DSGE model with 24 structural variables, when I presented the paper, some people that all my 24 structural shocks need to have economic meaning. I am very confused, I have defined the meaning of the structural shocks through the specification of the DSGE model, why my paper still lacks economic interpretation of DSGE structural shocks? Does it mean that each structural shock needs to appear in a minimum number of equations?
Thank you and look forward to hearing from you.
Best,
Jesse