RDP 2013-06: Estimating and Identifying Empirical BVAR-DSGE Models for Small Open Economies Equation

\begin{matrix} \min_{Q^{L}} & ‖ R^{L} Q^{L} - B_{D S G E m e d i a n}^{L - 1} ‖ + ‖ κ R^{L} Q^{L} - B_{D S G E m e d i a n}^{S L - 1} ‖ \\ s . t . & Q^{L^{'}} Q^{L} = I . \end{matrix}