The role of simulation methods in Macroeconomics

After reviewing the reasons to use solution methods in macroeconomics, this survey paper discusses different aspects relative to a rigorous use of the numerical output of such methods. Special attention is paid to suggestions that have been made to incorporate parameter uncertainty. Finally, the need to test for usually maintained assumptions, such as rationality of expectations, is emphasized.

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Year of publication:	2001-01-24
Authors:	Novales, Alfonso
Published in:	Spanish Economic Review. - Asociación Española de Economía - AEE. - Vol. 2.2000, 3, p. 155-181
Publisher:	Asociación Española de Economía - AEE
Subject:	Numerical solution methods \| rational expectations \| calibration

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Extent:	application/pdf
Type of publication:	Article
Classification:	C8 - Data Collection and Data Estimation Methodology; Computer Programs ; C9 - Design of Experiments ; E3 - Prices, Business Fluctuations, and Cycles ; E6 - Macroeconomic Policy Formation, Macroeconomic Aspects of Public Finance, Macroeconomic Policy, and General Outlook ; O4 - Economic Growth and Aggregate Productivity
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005155585