Simulations under Uncertainty
Adjemian, Stéphane
Simulations under Uncertainty - 2008.
10
The authors illustrate the usefulness of the Bayesian approach in economic-policy assessment, which typically relies on simulations. We describe a dynamic stochastic general equilibrium (DGSE) model for the euro zone. The Bayesian estimation of the model measures parameter-related uncertainty,which translates into simulation-related uncertainty.We offer a practical application by simulating the impact of a tax policy: an announced VAT shock.
Simulations under Uncertainty - 2008.
10
The authors illustrate the usefulness of the Bayesian approach in economic-policy assessment, which typically relies on simulations. We describe a dynamic stochastic general equilibrium (DGSE) model for the euro zone. The Bayesian estimation of the model measures parameter-related uncertainty,which translates into simulation-related uncertainty.We offer a practical application by simulating the impact of a tax policy: an announced VAT shock.
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