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Year: 2009 Publisher: London Centre For Economic Policy Research
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Year: 2014 Publisher: London Centre for economic policy research
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Year: 2011 Publisher: London Centre For Economic Policy Research
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Year: 2012 Publisher: London Centre For Economic Policy Research
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Year: 1999 Publisher: Cambridge, Mass. Natonal Bureau of Economic Research
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Year: 2003 Publisher: Cambridge, Mass. NBER
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Year: 2004 Publisher: Cambridge, Mass. NBER
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Year: 2006 Publisher: Cambridge, Mass. NBER
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Year: 2011 Publisher: London Centre For Economic Policy Research
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Year: 1999 Publisher: Cambridge, Mass. National Bureau of Economic Research
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A well known result is that the Gaussian log-likelihood can be expressed as the sum over different frequency components. This implies that the likelihood ratio statistic has a similar linear decomposition. We exploit these observations to devise diagnostic methods that are useful for interpreting maximum likelihood parameter estimates and likelihood ratio tests. We apply the methods to the estimation and testing of two real business cycle models. The standard real business cycle model is rejected in favor of an alternative in which capital investment requires a planning period
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