IDEAS home Printed from https://ideas.repec.org/p/arx/papers/2608.10596.html

A Note on the Identification Step in "A Semistructural Methodology for Policy Counterfactuals"

Author

Listed:
  • Henri Keranen

Abstract

The New Keynesian example of Beraja (2023) is not identified at its printed calibration: more than one structure satisfies every condition of its identification step. Two of the paper's six identifying restrictions coincide on equilibrium equations consistent with the printed reduced form, leaving eleven conditions to determine an equation's twelve coefficients. The note derives the rank condition the identification step requires, computable from the reduced form and the restrictions alone. The note also documents and corrects a misprint in the paper's counterfactual display. A one-clause amendment to the paper's Theorem 1 restores its conclusion.

Suggested Citation

  • Henri Keranen, 2026. "A Note on the Identification Step in "A Semistructural Methodology for Policy Counterfactuals"," Papers 2608.10596, arXiv.org.
    • Handle: RePEc:arx:papers:2608.10596
    as

    Download full text from publisher

    File URL: https://arxiv.org/pdf/2608.10596
    File Function: Latest version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Martin Beraja, 2023. "A Semistructural Methodology for Policy Counterfactuals," Journal of Political Economy, University of Chicago Press, vol. 131(1), pages 190-201.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alisdair McKay & Christian K. Wolf, 2023. "What Can Time‐Series Regressions Tell Us About Policy Counterfactuals?," Econometrica, Econometric Society, vol. 91(5), pages 1695-1725, September.
    2. Régis Barnichon & Geert Mesters, 2026. "Policy evaluation with sufficient macro statistics: a primer," The Econometrics Journal, Royal Economic Society, vol. 29(1), pages 27-68.
    3. de Soyres, François & Fuchs, Simon & Kondo, Illenin O. & Maghin, Helene, 2025. "Economic diversity and the resilience of cities," Journal of International Economics, Elsevier, vol. 158(C).
    4. Coenen, Günter & Mazelis, Falk & Motto, Roberto & Ristiniemi, Annukka & Smets, Frank & Warne, Anders & Wouters, Raf, 2025. "Inflation and monetary policy in medium-sized New Keynesian DSGE models," Working Paper Series 3137, European Central Bank.
    5. Martin Beraja & Nathan Zorzi, 2024. "Durables and Size-Dependence in the Marginal Propensity to Spend," NBER Working Papers 32080, National Bureau of Economic Research, Inc.
    6. Endong Wang, 2024. "Local projections identify the same policy counterfactuals as empirical and structural models," Papers 2409.09577, arXiv.org, revised Feb 2026.
    7. Hebden, James & Winkler, Fabian, 2026. "Computation of policy counterfactuals in sequence space," Journal of Economic Dynamics and Control, Elsevier, vol. 182(C).
    8. Langfeng Zhou, 2026. "European green transition: spillovers to the small open economy and welfare implications," International Economics and Economic Policy, Springer, vol. 23(3), pages 1-33, July.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arx:papers:2608.10596. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: arXiv administrators (email available below). General contact details of provider: https://arxiv.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.