Parameter Estimation for a Computable General Equilibrium Model: A Maximum Entropy Approach
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Parameter Estimation for a Computable General Equilibrium Model : A Maximum Entropy Approach. / Arndt, Channing; Robinson, Sherman; Tarp, Finn.
I: Economic Modelling, Bind 19, Nr. 3, 2002.Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt
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TY - JOUR
T1 - Parameter Estimation for a Computable General Equilibrium Model
T2 - A Maximum Entropy Approach
AU - Arndt, Channing
AU - Robinson, Sherman
AU - Tarp, Finn
N1 - Final Manuscript for Economic Modelling
PY - 2002
Y1 - 2002
N2 - We introduce a maximum entropy approach to parameter estimation for computable general equilibrium (CGE) models. The approach applies information theory to estimating a system of non-linear simultaneous equations. It has a number of advantages. First, it imposes all general equilibrium constraints. Second, it permits incorporation of prior information on parameter values. Third, it can be applied in the absence of copious data. Finally, it supplies measures of the capacity of the model to reproduce the historical record and the statistical significance of parameter estimates. The method is applied to estimating a CGE model of Mozambique.
AB - We introduce a maximum entropy approach to parameter estimation for computable general equilibrium (CGE) models. The approach applies information theory to estimating a system of non-linear simultaneous equations. It has a number of advantages. First, it imposes all general equilibrium constraints. Second, it permits incorporation of prior information on parameter values. Third, it can be applied in the absence of copious data. Finally, it supplies measures of the capacity of the model to reproduce the historical record and the statistical significance of parameter estimates. The method is applied to estimating a CGE model of Mozambique.
M3 - Journal article
VL - 19
JO - Economic Modelling
JF - Economic Modelling
SN - 0264-9993
IS - 3
ER -
ID: 164539779