Statistical Inference For Computable General Equilibrium Models, With Application To A Model Of The Moroccan Economy

Touhami Abdelkhalek and Jean-Marie Dufour ()

The Review of Economics and Statistics, 1998, vol. 80, issue 4, 520-534

Abstract: We study the problem of measuring the uncertainty of computable general equilibrium (CGE) (or RBC)-type model simulations associated with parameter uncertainty. We describe two approaches for building confidence sets on model endogenous variables. The first uses a standard Wald-type statistic. The second approach assumes that a confidence set (sampling or Baycsian) is available for the free parameters, from which confidence sets are derived by a projection technique. The latter has two advantages: first, confidence set validity is not affected by model nonlinearities; second, we can easily build simultaneous confidence intervals for an unlimited number of variables. We study conditions under which these confidence sets take the form of intervals and show how they can be implemented using standard methods for solving CGE models. We present an application to a CGE model of the Moroccan economy to study the effects of policy-induced increases of transfers from Moroccan expatriates. © 1998 by the President and Fellows of Harvard College and the Massachusetts Institute of Technolog

Date: 1998
References: Add references at CitEc
Citations: View citations in EconPapers (42)

Downloads: (external link)
http://www.mitpressjournals.org/doi/pdf/10.1162/003465398557807 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Statistical Inference for Computable General Equilibrium Models with Application to a Model of the Moroccan Economy (1997)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:tpr:restat:v:80:y:1998:i:4:p:520-534

Ordering information: This journal article can be ordered from
https://mitpressjour ... rnal/?issn=0034-6535

Access Statistics for this article

The Review of Economics and Statistics is currently edited by Pierre Azoulay, Olivier Coibion, Will Dobbie, Raymond Fisman, Benjamin R. Handel, Brian A. Jacob, Kareen Rozen, Xiaoxia Shi, Tavneet Suri and Yi Xu

More articles in The Review of Economics and Statistics from MIT Press
Bibliographic data for series maintained by The MIT Press ().