The ‘Puzzles’ Methodology: En Route to Indirect Inference?

We review the methods used in many papers to evaluate DSGE models by comparing their simulated moments with data moments. We compare these with the method of Indirect Inference to which they are closely related. We illustrate the comparison with contrasting assessments of a two-country model in two recent papers. We conclude that Indirect Inference is the proper end point of the puzzles methodology.

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Year of publication:	2009-09
Authors:	Le, Vo Phuong Mai ; Minford, Patrick ; Wickens, Michael
Institutions:	Centre for Dynamic Macroeconomic Analysis, University of St. Andrews
Subject:	Bootstrap \| US-EU Model \| DSGE \| VAR \| Indirect Inference \| Wald Statistic \| Anomaly \| Puzzle

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Extent:	application/pdf
Series:	CDMA Conference Paper Series.
Type of publication:	Book / Working Paper
Classification:	C12 - Hypothesis Testing ; C32 - Time-Series Models ; C52 - Model Evaluation and Testing ; E1 - General Aggregative Models
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008527081