Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/24764
Authors: 
Hermeling, Claudia
Mennel, Tim
Year of Publication: 
2008
Series/Report no.: 
ZEW Discussion Papers 08-068
Abstract: 
Sensitivity analysis studies how the variation in the numerical output of a model can be quantitatively apportioned to different sources of variation in basic input parameters. Thus, it serves to examine the robustness of numerical results with respect to input parameters, which is a prerequisite for deriving economic conclusions from them. In practice, modellers apply different methods, often chosen ad hoc, to do sensitivity analysis. This paper pursues a systematic approach. It formalizes deterministic and stochastic methods used for sensitivity analysis. Moreover, it presents the numerical algorithms to apply the methods, in particular, an improved version of a Gauss-Quadrature algorithm, applicable to one as well as multidimensional sensitivity analysis. The advantages and disadvantages of different methods and algorithms are discussed as well as their applicability.
Subjects: 
Sensitivity Analysis
Computational Methods
JEL: 
D50
C15
C63
Document Type: 
Working Paper

Files in This Item:
File
Size
206.23 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.