A Closed Form Multivariate Linear Filter /

This paper considers the problem of jointly decomposing a set of time series variables into cyclical and trend components, subject to sets of stochastic linear restrictions among these cyclical and trend components. We derive a closed form solution to an ordinary problem featuring homogeneous penalt...

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Bibliografski detalji
Glavni autor: Vitek, Francis
Format: Žurnal
Jezik:English
Izdano: Washington, D.C. : International Monetary Fund, 2018.
Serija:IMF Working Papers; Working Paper ; No. 2018/275
Online pristup:Full text available on IMF
Opis
Sažetak:This paper considers the problem of jointly decomposing a set of time series variables into cyclical and trend components, subject to sets of stochastic linear restrictions among these cyclical and trend components. We derive a closed form solution to an ordinary problem featuring homogeneous penalty term difference orders and static restrictions, as well as to a generalized problem featuring heterogeneous penalty term difference orders and dynamic restrictions. We use our Generalized Multivariate Linear Filter to jointly estimate potential output, the natural rate of unemployment and the natural rate of interest, conditional on selected equilibrium conditions from a calibrated New Keynesian model.
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Opis:1 online resource (24 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Pristup:Electronic access restricted to authorized BRAC University faculty, staff and students