Download or read book Similarity-Augmented Structural Vector Autoregression written by Visa Kuntze and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: We develop a similarity-based structural vector autoregressive (SVAR) model using the similar clusters of data relevant for the prevailing initial macroeconomic conditions of interest. Our computationally attractive simple approach enables us to uncover time-varying effects of structural economic shocks in a flexible manner in relevant local environments instead of relying on a model estimated from the entire sample period. Our empirical results show that the dynamic effects of forward guidance shocks are generally dependent on the stance of monetary policy and typically rather negligible for output and inflation.