IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Labor-Market Heterogeneity, Aggregation, and the Policy-(In)variance of DSGE Model Parameters

  • Yongsung Chang

    (University of Rochester, Yonsei University)

  • Sun-Bin Kim

    (Yonsei University)

  • Frank Schorfheide

    (University of Pennsylvania CEPR and NBER)

Data from a heterogeneous-agents economy with incomplete asset markets and indivisible labor supply are simulated under various scal policy regimes and an approximating representative-agent model is estimated. Preference and technology parameter estimates of the representative-agent model are not invariant to policy changes and the bias in the representative-agent model's policy predictions is large compared to predictive intervals that re ect parameter uncertainty. Since it is not always feasible to account for heterogeneity explicitly, it is important to recognize the possibility that the parameters of a highly aggregated model may not be invariant with respect to policy changes.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: ftp://165.132.78.176/repec/yon/wpaper/2012rwp-51.pdf
Download Restriction: no

Paper provided by Yonsei University, Yonsei Economics Research Institute in its series Working papers with number 2012rwp-51.

as
in new window

Length: 56 pages
Date of creation: 05 Oct 2012
Date of revision:
Handle: RePEc:yon:wpaper:2012rwp-51
Contact details of provider: Postal: 50 Yonsei-ro, Seodaemun-gu, Seoul
Phone: 82-2-2123-4065
Fax: 82-2-364-9149
Web page: http://yeri.yonsei.ac.kr/
Email:


More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:yon:wpaper:2012rwp-51. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (YERI)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.