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The role of simulation methods in Macroeconomics

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Author Info
Alfonso Novales () (Departamento de Economía Cuantitativa, Universidad Complutense de Madrid, Somosaguas, 28223 Madrid, Spain)

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Abstract

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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File URL: http://link.springer.de/link/service/journals/10108/papers/0002003/00020155.pdf
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Publisher Info
Article provided by Springer in its journal Spanish Economic Review.

Volume (Year): 2 (2000)
Issue (Month): 3 ()
Pages: 155-181
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Handle: RePEc:spr:specre:v:2:y:2000:i:3:p:155-181

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Related research
Keywords: Numerical solution methods rational expectations calibration

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Find related papers by JEL classification:
C8 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs
C9 - Mathematical and Quantitative Methods - - Design of Experiments
E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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This page was last updated on 2008-8-19.


This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.