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The advantages of local projections are numerous: (1) they can be estimated by simple regression techniques with standard regression packages; (2) they are more robust to misspecification; (3) joint or point-wise analytic inference is simple; and (4) they easily accommodate experimentation with highly nonlinear and flexible specifications that may be impractical in a multivariate context. Therefore, these methods are a natural alternative to estimating impulse responses from VARs. Monte Carlo evidence and an application to a simple, closed-economy, new-Keynesian model clarify these numerous advantages.<\/jats:p>","DOI":"10.1257\/0002828053828518","type":"journal-article","created":{"date-parts":[[2005,5,7]],"date-time":"2005-05-07T20:54:57Z","timestamp":1115499297000},"page":"161-182","source":"Crossref","is-referenced-by-count":3560,"title":["Estimation and Inference of Impulse Responses by Local Projections"],"prefix":"10.1257","volume":"95","author":[{"given":"\u00d2scar","family":"Jord\u00e0","sequence":"first","affiliation":[{"name":"Department of Economics, University of California, Davis, One Shields Ave., Davis, CA 95616-8578."}],"role":[{"vocabulary":"crossref","role":"author"}]}],"member":"11","reference":[{"key":"p_1","doi-asserted-by":"publisher","DOI":"10.1016\/S0165-1889(02)00021-0"},{"issue":"2","key":"p_2","first-page":"101","volume":"67","author":"Barro Robert J","year":"1977","journal-title":"American Economic 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