01702cas a2200265 a 4500 AALejournalIMF013920 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475589214 1018-5941 BD-DhAAL BD-DhAAL Farmer, Roger. Solving and Estimating Indeterminate DSGE Models / Roger Farmer, Vadim Khramov. Washington, D.C. : International Monetary Fund, 2013. 1 online resource (30 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students We propose a method for solving and estimating linear rational expectations models that exhibit indeterminacy and we provide step-by-step guidelines for implementing this method in the Matlab-based packages Dynare and Gensys. Our method redefines a subset of expectational errors as new fundamentals. This redefinition allows us to treat indeterminate models as determinate and to apply standard solution algorithms. We provide a selection method, based on Bayesian model comparison, to decide which errors to pick as fundamental and we present simulation results to show how our procedure works in practice. Mode of access: Internet WP imf Khramov, Vadim. IMF Working Papers; Working Paper ; No. 2013/200 Full text available on IMF http://elibrary.imf.org/view/journals/001/2013/200/001.2013.issue-200-en.xml IMF e-Library