The advantages of DSGE

General DSGE Modeling
1

Dear All Users,
I would be grateful if anyone direct me, what is the advantages of DSGE in comparison to the other models, for example VAR :question: :exclamation:

Thanks everybody

2

The difference is that DSGE models are structural models while VARs are reduced form VARs. DSGE models are basically structural VARs (sVARs) with additional cross-equation restrictions.