Abstract

JARAMILLO G, Patricio. Estimating Bayesian VAR for the Chilean Economy. RAE [online]. 2009, vol.24, n.1, pp. 101-126. ISSN 0718-8870.  doi: 10.4067/S0718-88702009000100005.

In this paper Bayesian Vector Autoregression (BVAR) models are estimated for the Chilean economy. Under this approach, the transmission mechanisms of monetary policy and forecast exercises are studied and evaluated for the main macroeconomic variables. Then, the results are contrasted with the standard VAR models presented in the previous literature for the case of Chile and the implications for the monetary policy design are discussed.

Keywords : Bayesian VAR Models; Forecasting; Transmission Mechanisms; Monetary Policy.