Can We Use Reduced Form VARs for Policy Evaluation?

The Institute of Economics will hold a seminar meeting as part of its Seminar Series on Tuesday, February 13, 2024: Fulvio Corsi from University of Pisa will present the paper “Can We Use Reduced Form VARs for Policy Evaluation?".

Abstract:

In order to use reduced form VAR models in policy evaluation, we would need to solve two important issues: (i) Show under which conditions it would be possible to avoid the use of any identification scheme to recover the structural shocks and, hence, the correct impulse response functions; (ii) provide an (at least partial) econometric answer to the far reaching Lucas Critique in the framework of VAR models. With the aim of shedding some light on the possible venues to achieve this challenging goal, we present the proposals and results of two papers that try to tackle these two problems separately and discuss how the two approaches could be combined.

The Seminar will be held in Aula 3.

For online partecipation use this link.