needs to generate simulated data according to the model and choose parameters that make moments of this simulated data as … computational caveat regarding these MSM estimators - that often one's economic model is hard to solve. Examples include complicated … model needs to be solved in an estimation procedure, significantly decreasing computational burden …

In conventional stochastic simulation algorithms, Monte Carlo integration and curve fitting are merged together and … stochastic simulation approach in which integration and curve fitting are separated. We specifically allow for the use of … achieve accuracy of solutions that is orders of magnitude higher than that of the conventional stochastic simulation …

We introduce an algorithm for solving dynamic economic models that merges stochastic simulation and projection … approaches: we use simulation to approximate the ergodic measure of the solution, we construct a fixed grid covering the support … of the constructed ergodic measure, and we use projection techniques to accurately solve the model on that grid. The grid …

suggestions is new in itself, we examine their effects jointly in one coherent model. Our quantitative finding is that openness …

We simulate corporate tax reform in a single good, five-region (U.S., Europe, Japan, China, India) model, featuring … skilled and unskilled labor, detailed region-specific demographics and fiscal policies. Eliminating the model's U.S. corporate … income tax produces rapid and dramatic increases in the model's level of U.S. investment, output, and real wages, making the …

We develop numerically stable stochastic simulation approaches for solving dynamic economic models. We rely on standard … simulation procedures to simultaneously compute an ergodic distribution of state variables, its support and the associated … decision rules. We differ from existing methods, however, in how we use simulation data to approximate decision rules. Instead …

effects. This simulation study used real-world data to compare model performance across a range of important statistical … yielded high rates of Type I error, raising concerns of spurious conclusions about policy effectiveness. Finally, model …

effects. This simulation study used real-world data to compare model performance across a range of important statistical … yielded high rates of Type I error, raising concerns of spurious conclusions about policy effectiveness. Finally, model …

a random walk, an ARIMA model, two unobserved components models, and models with slowly changing nonstationary …