Barcelona GSE Affiliated Professor Geert Mesters (UPF and Barcelona GSE) and co-author Régis Barnichon have a forthcoming publication in the Quarterly Journal of Economics on "Identifying modern macro equations with old shocks."
In their paper, Barnichon and Mesters propose a new approach to estimating structural forward-looking macroeconomic equations such as Phillips curves, Euler equations, or monetary policy rules that uses sequences of independently identified structural shocks as instrumental variables.
