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the advantages of DSGE

PostPosted: Fri May 02, 2014 10:02 am
by akbar_itc@yahoo.com
Dear All Users,
I would be grateful if anyone direct me, what is the advantages of DSGE in comparison to the other models, for example VAR :?: :!:

Thanks everybody

Re: the advantages of DSGE

PostPosted: Tue May 06, 2014 3:31 pm
by jpfeifer
The difference is that DSGE models are structural models while VARs are reduced form VARs. DSGE models are basically structural VARs (sVARs) with additional cross-equation restrictions.