Standard Errors for Calibrated Parameters.

Calibration, the practice of choosing the parameters of a structural model to match certain empirical moments, can be viewed as minimum distance estimation. Existing standard error formulas for such estimators require a consistent estimate of the correlation structure of the empirical moments, which...

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Publicado en:Review of Economic Studies Vol. 92; no. 5; pp. 2952 - 2979
Autores principales: Cocci, Matthew D, Plagborg-Møller, Mikkel
Formato: Artículo
Publicado: Oxford University Press / USA Oct2025
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: Oct2025
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      pub: Oxford University Press / USA
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        10.1093/restud/rdae099
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        atl: Standard Errors for Calibrated Parameters.
      aug:
        au:
          Cocci, Matthew D
          Plagborg-Møller, Mikkel
        affil:
          Amazon Web Services, USA
          Department of Economics, Princeton University, USA
      su:
        Calibration
        Parameter estimation
        Inferential statistics
        Statistical errors
        Estimation theory
        Confidence intervals
        Moments method (Statistics)
        Structural models
      sug:
        subj:
          Calibration
          Parameter estimation
          Inferential statistics
          Statistical errors
          Estimation theory
          Confidence intervals
          Moments method (Statistics)
          Structural models
      keyword:
        Data combination
        Minimum distance
        Moment selection
        Semidefinite programming
        Data combination
        Minimum distance
        Moment selection
        Semidefinite programming
      ab: Calibration, the practice of choosing the parameters of a structural model to match certain empirical moments, can be viewed as minimum distance estimation. Existing standard error formulas for such estimators require a consistent estimate of the correlation structure of the empirical moments, which is often unavailable in practice. Instead, the variances of the individual empirical moments are usually readily estimable. Using only these variances, we derive conservative standard errors and confidence intervals for the structural parameters that are valid even under the worst-case correlation structure. In the over-identified case, we show that the moment weighting scheme that minimizes the worst-case estimator variance amounts to a moment selection problem with a simple solution. Finally, we develop tests of over-identifying or parameter restrictions. We apply our methods empirically to a model of menu cost pricing for multi-product firms and to a heterogeneous agent New Keynesian model.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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