Discussion of
“Dynamic Causal Effects in a Nonlinear World: the Good, the Bad, and the Ugly”
Bibliographic Data
| ID | 19418924 |
|---|---|
| Authors | Sílvia Gonçalves (McGill University), Śılvia Gonçalves (McGill University, corresponding author), Ana Maria Herrera (0009-0007-9965-0116, University of Kentucky), Elena Pesavento (0000-0002-6975-2433, Emory University) |
| Year | 2025 |
| Volume | 43 |
| Issue | 4 |
| Pages | 755-760 |
| Publication date | 2025-10-02 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Journal of Business and Economic Statistics (JOURNAL) |
| Journal identifiers | ISSN: 0735-0015 • E-ISSN: 1537-2707 |
| Publisher | Informa UK Limited (PUBLISHER • GB) |
| DOI | 10.1080/07350015.2025.2495028 |
| OpenAlex | W4416186177 |
| Language | EN |
| References cited | 6 |
The ease of estimating linear local projections has made them a popular tool for impulse response function analysis. Kolesár and Plagborg-Møller’s main goal is to inquire whether local projections (LP) estimands of impulse response functions have a causal interpretation when the data generating process (DGP) is nonlinear. This discussion focuses on two questions. First, how should we interpret the magnitude of the linear LP estimands in nonlinear environments? Second, is the linear LP useful when the researcher is interested in the effects of large shocks rather than small shocks
Nonlinear system · Complex Systems and Decision Making · Critical Realism in Sociology · Economic Theory and Institutions
| Citation velocity | historical |
|---|---|
| Highly cited | No |