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Are structural VARs with long-run restrictions useful in developing business cycle theory?

  • Chari, V.V.
  • Kehoe, Patrick J.
  • McGrattan, Ellen R.

No, unless technology shocks account for virtually all of the fluctuations in output.

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Article provided by Elsevier in its journal Journal of Monetary Economics.

Volume (Year): 55 (2008)
Issue (Month): 8 (November)
Pages: 1337-1352

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Handle: RePEc:eee:moneco:v:55:y:2008:i:8:p:1337-1352
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505566

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  10. Galí, Jordi & Lopez-Salido, Jose David & Vallés Liberal, Javier, 2002. "Technology Shocks and Monetary Policy: Assessing the Fed's Performance," CEPR Discussion Papers 3211, C.E.P.R. Discussion Papers.
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  36. Gali, Jordi, 1992. "How Well Does the IS-LM Model Fit Postwar U.S. Data," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 709-38, May.
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