Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/258928 
Year of Publication: 
2021
Series/Report no.: 
CEBI Working Paper Series No. 14/20
Publisher: 
University of Copenhagen, Department of Economics, Center for Economic Behavior and Inequality (CEBI), Copenhagen
Abstract: 
A common approach to estimation of dynamic economic models is to calibrate a sub-set of model parameters and keep them fixed when estimating the remaining parameters. Calibrated parameters likely affect conclusions based on the model but estimation time often makes a systematic investigation of the sensitivity to calibrated parameters infeasible. I propose a simple and computationally low-cost measure of the sensitivity of parameters and other objects of interest to the calibrated parameters. In the main empirical application, I revisit the analysis of life-cycle savings motives in Gourinchas and Parker (2002) and show that some estimates are sensitive to calibrations.
Subjects: 
sensitivity
transparency
structural estimation
calibration
savings motives
JEL: 
C10
C52
C60
Document Type: 
Working Paper

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