More shocks than observables

Dynare help (legacy posts)
1

Hi
Is anybody aware of any potential identification issues when we estimate a DSGE model using more shocks than observables? I understand that estimation becomes easier as we add more shocks to the model, but I was concerned about potential identification issues. Are there any references that you would recommend to understand more about this?
Reuben

2

See Remark 26 (Number of observables vs. number of shocks) in my Guide to Observation Equations