<p>I'm working on a project in which I need to describe, compare and contrast various models of natural interest rate.</p>
<p>My team is planning to discuss the Laubach-Williams model, DSGE model, Structural VAR, and the Hodrick-Prescott and Band-Pass filter.</p>
<p>My question: What other models should I be looking at, if any? Are the filters even considered &quot;models&quot;? Am I even asking the right questions? I feel like I don't have the context to know what specifically I should be looking for. Any help would be appreciated.</p>

CC BY-SA 4.0
2023-07-28T00:50:33.403Z
https://www.newyorkfed.org/research/policy/rstar also mentions the Holston-Laubach-Williams (2017) model.
chan1142
CC BY-SA 4.0
2023-07-28T00:56:14.563Z
I have no experience in this area, but the filters seem inappropriate. The natural interest rate is for "when an economy is at full strength and inflation is stable" (sort of counter-factual) (see the link in the above comment), but the filters are for the actual interest rates, i.e., not "at full strength and inflation is stable".
chan1142
<macroeconomics><econometrics><interest-rate>
How is natural interest rate estimated?
angelofmercy
# How is natural interest rate estimated?

(Asked by: username_0 on 2023-07-27)

I'm working on a project in which I need to describe, compare and contrast various models of natural interest rate.

My team is planning to discuss the Laubach-Williams model, DSGE model, Structural VAR, and the Hodrick-Prescott and Band-Pass filter.

My question: What other models should I be looking at, if any? Are the filters even considered "models"? Am I even asking the right questions? I feel like I don't have the context to know what specifically I should be looking for. Any help would be appreciated.

**Tags:** macroeconomics, econometrics, interest-rate

> **Comments:**
> **username_1**: https://www.newyorkfed.org/research/policy/rstar also mentions the Holston-Laubach-Williams (2017) model.  
> **username_1**: I have no experience in this area, but the filters seem inappropriate. The natural interest rate is for "when an economy is at full strength and inflation is stable" (sort of counter-factual) (see the link in the above comment), but the filters are for the actual interest rates, i.e., not "at full strength and inflation is stable".  

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## 0 answers

