Research methodology: empirical macroeconomics

Our research is empirically and quantitatively oriented and aims to lay the foundations for evidence-based policy advice. We apply econometric methods to estimate economic relationships on the basis of time series or panel data sets. We combine these methods with quasi-experimental identification methods to determine causal relationships between macroeconomic and/or financial market phenomena.

In particular, we use vector Autoregressions, local projection techniques, Bayesian approaches for estimating time-varying econometric models with stochastic volatility or factor models for modeling large data sets.

In addition, we use so-called New Keynesian (NK) dynamic stochastic general equilibrium (DSGE) models to shed light on structural relationships in an economy from a more theoretical perspective.