Testing calibrated general equilibrium models

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In Mariano, Schuerman and Weeks (eds.)
To cite or link this document: http://hdl.handle.net/10230/324
dc.contributor.author Canova, Fabio
dc.contributor.author Ortega, Eva
dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa
dc.date.issued 1996-03-01
dc.identifier.citation In Mariano, Schuerman and Weeks (eds.)
dc.identifier.uri http://hdl.handle.net/10230/324
dc.description.abstract This paper illustrates the philosophy which forms the basis of calibration exercises in general equilibrium macroeconomic models and the details of the procedure, the advantages and the disadvantages of the approach, with particular reference to the issue of testing ``false'' economic models. We provide an overview of the most recent simulation--based approaches to the testing problem and compare them to standard econometric methods used to test the fit of non--linear dynamic general equilibrium models. We illustrate how simulation--based techniques can be used to formally evaluate the fit of a calibrated model to the data and obtain ideas on how to improve the model design using a standard problem in the international real business cycle literature, i.e. whether a model with complete financial markets and no restrictions to capital mobility is able to reproduce the second order properties of aggregate saving and aggregate investment in an open economy.
dc.language.iso eng
dc.relation.ispartofseries Economics and Business Working Papers Series; 166
dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
dc.title Testing calibrated general equilibrium models
dc.title.alternative Simualtion Methods in Econometrics
dc.type info:eu-repo/semantics/workingPaper
dc.date.modified 2016-06-04T02:50:16Z
dc.subject.keyword Macroeconomics and International Economics
dc.subject.keyword calibration
dc.subject.keyword simulation
dc.subject.keyword evaluation
dc.subject.keyword saving and investment correlations
dc.rights.accessRights info:eu-repo/semantics/openAccess

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