Non-linear DSGE models and the optimized central difference particle filter

B-Tier
Journal: Journal of Economic Dynamics and Control
Year: 2011
Volume: 35
Issue: 10
Pages: 1671-1695

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

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

Abstract

We improve the accuracy and speed of particle filtering for non-linear DSGE models with potentially non-normal shocks. This is done by introducing a new proposal distribution which (i) incorporates information from new observables and (ii) has a small optimization step that minimizes the distance to the optimal proposal distribution. A particle filter with this proposal distribution is shown to deliver a high level of accuracy even with relatively few particles, and it is therefore much more efficient than the standard particle filter.

Technical Details

RePEc Handle
repec:eee:dyncon:v:35:y:2011:i:10:p:1671-1695
Journal Field
Macro
Author Count
1
Added to Database
2026-01-24