Year: 2020
Type: preprint
Abstract: A common approach to estimation of economic models is to calibrate a sub-set of model parameters and keep them fixed when estimating the remaining parameters. Calibrated parameters likely affect conclusions based on the model but estimation time often makes a systematic investigation of the sensitivity to calibrated parameters infeasible. I propose a simple and computationally low-cost measure of the sensitivity of parameters and other objects of interest to the calibrated parameters. In the main empirical application, I revisit the analysis of life-cycle savings motives in Gourinchas and Parker (2002) and show that some estimates are sensitive to calibrations.
Source: arXiv (Cornell University)
Author: Jørgensen, Thomas H.
Language: English
Domain: Social Sciences
Open Access status: green
Award: G6152239096
OpenAlex ID: W4287811948