Estimating a Behavioral New Keynesian Model
General Economics
2019-12-18 v1 Economics
Abstract
This paper analyzes identification issues of a behavorial New Keynesian model and estimates it using likelihood-based and limited-information methods with identification-robust confidence sets. The model presents some of the same difficulties that exist in simple benchmark DSGE models, but the analytical solution is able to indicate in what conditions the cognitive discounting parameter (attention to the future) can be identified and the robust estimation methods is able to confirm its importance for explaining the proposed behavioral model.
Cite
@article{arxiv.1912.07601,
title = {Estimating a Behavioral New Keynesian Model},
author = {Joaquim Andrade and Pedro Cordeiro and Guilherme Lambais},
journal= {arXiv preprint arXiv:1912.07601},
year = {2019}
}