Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/65745
Authors: 
Vo Phuong Mai Le
Minford, Patrick
Wickens, Michael
Year of Publication: 
2009
Series/Report no.: 
Cardiff Economics Working Papers E2009/31
Abstract: 
We review the methods used in many papers to evaluate DSGE models by comparing their simulated moments and other features with data equivalents. We note that they select, scale and characterise the shocks without reference to the data; crucially they fail to use the joint distribution of the features under comparison. We illustrate this point by recomputing an assessment of a two-country model in a recent paper; we find that the paper's conclusions are essentially reversed.
Subjects: 
bootstrap
US-EU model
DSGE
VAR
indirect inference
Wald statistic
anomaly
puzzle
JEL: 
C12
C32
C52
E1
Document Type: 
Working Paper

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