How Deep are the Deep Parameters?
Policy evaluation based on the estimation of dynamic stochastic general equilibrium models rests on the assumption that a representative agent can be identified, whose behavioural parameters are policy-independent. Building on earlier work by Geweke [1985], this paper shows that in the presence of agents' heterogenity the representative agent, if any, is not structural, as its estimated behavioural parameters are not policy-independent. The paper identifies two sources of non-structurality and provides an example illustrating its effects.
Year of publication: |
2002
|
---|---|
Authors: | ALTISSIMO, Filippo ; SIVIERO, Stefano ; TERLIZZESE, Daniele |
Published in: |
Annales d'Economie et de Statistique. - École Nationale de la Statistique et de l'Admnistration Économique (ENSAE). - 2002, 67-68, p. 207-226
|
Publisher: |
École Nationale de la Statistique et de l'Admnistration Économique (ENSAE) |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
Altissimo, Filippo, (2006)
-
How deep are the deep parameters?
Altissimo, Filippo, (2002)
-
How deep are the deep parameters?
Altissimo, Filippo, (1999)
- More ...