Solving, Estimating, and Selecting Nonlinear Dynamic Models Without The Curse of Dimensionality.

We present a comprehensive framework for Bayesian estimation of structural nonlinear dynamic economic models on sparse grids to overcome the curse of dimensionality for approximations. We apply sparse grids to a global polynomial approximation of the model solution, to the quadrature of integrals ar...

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Publicado en:Econometrica Vol. 78; no. 2; pp. 803 - 822
Autores principales: Winschel, Viktor, Krätzig, Markus
Formato: Artículo
Publicado: Wiley-Blackwell March 2010
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Solving, Estimating, and Selecting Nonlinear Dynamic Models Without The Curse of Dimensionality.
      aug:
        au:
          Winschel, Viktor
          Krätzig, Markus
      su:
        Bayesian analysis
        Economic equilibrium
        Estimation theory
      sug:
        subj:
          Bayesian analysis
          Economic equilibrium
          Estimation theory
      ab: We present a comprehensive framework for Bayesian estimation of structural nonlinear dynamic economic models on sparse grids to overcome the curse of dimensionality for approximations. We apply sparse grids to a global polynomial approximation of the model solution, to the quadrature of integrals arising as rational expectations, and to three new nonlinear state space filters which speed up the sequential importance resampling particle filter. The posterior of the structural parameters is estimated by a new Metropolis–Hastings algorithm with mixing parallel sequences. The parallel extension improves the global maximization property of the algorithm, simplifies the parameterization for an appropriate acceptance ratio, and allows a simple implementation of the estimation on parallel computers. Finally, we provide all algorithms in the open source software JBendge for the solution and estimation of a general class of models.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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