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• W1966551436 abstract "Calibration in macroeconomics involves choosing fre parameters by matching certain moments of simulted models with those of data. We formally examine this method by treating the process of calibration as an econometric estimator. A numerical version of the Mehra-Prescott (1985) economy is the setting for an evaluation of calibration estimators via Monte Carlo methods. While these estimators sometimes have reasonable finite-sample properties they are not robust to mistakes in setting non-free parameters. In contrast, generalized method-of-moments (GMM) estimators have satisfactory finite-sample characteristics, quick convergence, and informational requirements less stringent than those of calibration estimators. In dynamic equilibrium models in which GMM is infeasible we offer some suggestions for improving estimates based on calibration methodology." @default.
• W1966551436 created "2016-06-24" @default.
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• W1966551436 date "1990-01-01" @default.
• W1966551436 modified "2023-09-24" @default.
• W1966551436 title "Calibration as estimation" @default.
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• W1966551436 doi "https://doi.org/10.1080/07474939008800178" @default.
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