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

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

No 7539, CEPR Discussion Papers from C.E.P.R. Discussion Papers

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: Anomaly; Bootstrap; Dsge; indirect inference; Puzzle; Us-eu model; Var; Wald statistic (search for similar items in EconPapers)
JEL-codes: C12 C32 C52 E1 (search for similar items in EconPapers)
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 (1)

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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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