01950cas a2200313 a 4500 AALejournalIMF014083 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484318379 1018-5941 BD-DhAAL BD-DhAAL Andrle, Michal. System Priors : Formulating Priors about DSGE Models' Properties / Michal Andrle, Jaromir Benes. Washington, D.C. : International Monetary Fund, 2013. 1 online resource (26 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 This paper proposes a novel way of formulating priors for estimating economic models. System priors are priors about the model's features and behavior as a system, such as the sacrifice ratio or the maximum duration of response of inflation to a particular shock, for instance. System priors represent a very transparent and economically meaningful way of formulating priors about parameters, without the unintended consequences of independent priors about individual parameters. System priors may complement or also substitute for independent marginal priors. The new philosophy of formulating priors is motivated, explained and illustrated using a structural model for monetary policy. Mode of access: Internet Demand Shock imf Monetary Policy imf Normal Distribution imf Sacrifice Ratio imf WP imf Benes, Jaromir. IMF Working Papers; Working Paper ; No. 2013/257 Full text available on IMF http://elibrary.imf.org/view/journals/001/2013/257/001.2013.issue-257-en.xml IMF e-Library