Lubik, Thomas A. (contributor); Surico, Paolo (contributor) - 2006
"This paper re-considers the empirical relevance of the Lucas critique using a DSGE sticky price model in which a weak … neglected. In contrast, when the instability of the reduced-form error variances is accounted for, the Lucas critique is found … real activity observed in U.S. data. Using Monte Carlo simulations and a backward-looking model of aggregate supply and …