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:	2010
Authors:	Le, Vo Phuong Mai ; Minford, Patrick ; Wickens, Michael
Published in:	Economic Modelling. - Elsevier, ISSN 0264-9993. - Vol. 27.2010, 6, p. 1417-1428
Publisher:	Elsevier
Keywords:	Bootstrap US-EU model DSGE VAR Indirect Inference Wald statistic Anomaly Puzzle

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008866343