Mapping DSGE and VAR Models: Unveiling Hidden Assumptions and Open Questions.
The article explores how DSGE and VAR models are connected in economics. It breaks down the process into three steps and discusses potential issues and assumptions. The researchers suggest new research directions, such as understanding the impact of log-linearization on estimation and dealing with multiple equilibria. They also propose incorporating information from different types of models and data sources to improve the accuracy of economic models.