Le, Vo Phuong Mai; Meenagh, David; Minford, A. Patrick L.; … - Economics Section, Cardiff Business School - 2012
Using Monte Carlo experiments, we examine the performance of Indirect Inference tests of DSGE models, usually versions of the Smets-Wouters New Keynesian model of the US postwar period. We compare these with tests based on direct inference (using the Likelihood Ratio), and on the Del...