Accuracy in Simulations

S-Tier
Journal: Review of Economic Studies
Year: 1994
Volume: 61
Issue: 1
Pages: 3-17

Authors (2)

Wouter J. Den Haan (not in RePEc) Albert Marcet (Barcelona School of Economics ...)

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Since the actual solution to intertemporal rational expectations models is usually not known, it is useful to have criteria for judging the accuracy of a given numerical solution. In this paper we propose a test for accuracy that is easy to implement and can be applied to a wide class of models without knowledge of the exact solution. We discuss the power of the test by simulating several models with the linear-quadratic approximation and with the method of parameterized expectations. We conclude that the test is powerful.

Technical Details

RePEc Handle
repec:oup:restud:v:61:y:1994:i:1:p:3-17.
Journal Field
General
Author Count
2
Added to Database
2026-01-25