The 'Puzzles' methodology: en route to Indirect Inference?

Vo Phuong Mai Le, A. Patrick Minford and Michael Wickens

No E2009/22, Cardiff Economics Working Papers from Cardiff University, Cardiff Business School, Economics Section

Abstract: We review the methods used in many papers to evaluate DSGE models by comparing their simulated moments with data moments. We compare these with the method of Indirect Inference to which they are closely related. We illustrate the comparison with contrasting assessments of a two-country model in two recent papers. We conclude that Indirect Inference is the proper end point of the puzzles methodology.

Keywords: Bootstrap; US-EU model; DSGE; VAR; indirect inference; Wald statistic; anomaly; puzzle (search for similar items in EconPapers)
JEL-codes: C12 C32 C52 E1 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2009-11
New Economics Papers: this item is included in nep-cba, nep-dge and nep-ecm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Journal Article: The 'Puzzles' methodology: En route to Indirect Inference? (2010)
Working Paper: The 'Puzzles' Methodology: en route to Indirect Inference? (2009)
Working Paper: The ‘Puzzles’ Methodology: En Route to Indirect Inference? (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:cdf:wpaper:2009/22

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