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Maximum likelihood in the frequency domain: the importance of time-to-plan

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Abstract

The authors illustrate the use of various frequency-domain tools for estimating and testing dynamic, stochastic, general-equilibrium models. Their substantive results confirm other findings that suggest that time-to-plan in investment technology has a potentially useful role to play in business-cycle models.

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  • Lawrence J. Christiano & Robert J. Vigfusson, 2001. "Maximum likelihood in the frequency domain: the importance of time-to-plan," Working Papers (Old Series) 0106, Federal Reserve Bank of Cleveland.
  • Handle: RePEc:fip:fedcwp:0106
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