Hello everyone,
Would you please explain me how the calibration of the dsge model is done?
What microdata should be collected?
Do these microdata relate to a single company, to a panel of companies in the same sector or to a panel of companies from several sectors of economic activity?
Please help me
Sorry, I don’t speak French.
Hello prof Jpfeifer
Would you please explain me how the calibration of the dsge model is done?
What microdata should be collected?
Do these microdata relate to a single company, to a panel of companies in the same sector or to a panel of companies from several sectors of economic activity?
Please help me
Pierre Raymond
Historically, calibration aimed at fixing some parameters to match stylized facts related to growth observations. Those long-run averages are not affected by stochastic shocks. For example, people often fix the discount factor to match the long-run real interest rate and the depreciation rate to match the capital to output ratio.
But you seem to aim at matching some other data e.g. from micro studies. There is not a lot of general guidance for that case. In particular, it’s hard to say anything without knowing more about the model and the parameters you want to set. Regarding your particular question, your data should be representative of what you are trying to model. If you build a sectoral model, then you should use sectoral data. If it’s a model about the aggregate economy, then use data from all available sectors.