The IEP Researchers Visited Barcelona Graduate School of Economics

Within advanced course "Empirical Time Series for Macroeconomic Analysis: Advanced" instructed by Luca Gambetti, they investigated the problem of non-fundamentalness, a problem that can arise in SVAR models because of a gap between the information set of the econometrician and that of the agents. The course covered both theoretical and empirical procedures to detect non-fundamentalness and discuss models to tackle non-fundamentalness, in particular Factor models and FAVARs. In this context they reviewed the news-driven business cycles debate and the fiscal foresight literature.