DSGE models and BVARs are commonly used in academia and policy circles.
They generate different performances (e.g., in forecasting) and perhaps serve different purposes. Notwithstanding, they have a relationship and mapping to one another, and may be used jointly in forecast combination exercises.
I'm just wondering if there are specific and well-separated advantages and disadvantages to DSGE relative to BVARs -- for instance as regards certain diagnostic metrics or at certain horizons and certain situations?
