Chapter 58
CALIBRATION
CHRISTINA DAWKINS *
University of Warwick
T.N SRINIVASAN**
Yale University
JOHN WHALLEY*
Universities of Warwick and Western Ontario and NBER
Contents
Abstract 3654
Keywords 3654
1 Introduction 3655
2 Calibration: its meaning and some early examples 3656
2.1 Two examples 3657
2.2 Reasons for using calibration 3660
3 The debate about calibration 3661
3.1 Lines of the debate 3662
3.2 Calibration is estimation, estimation is calibration 3663
3.3 The Jorgenson-McKitrick critique of micro model calibration 3665
4 Making calibration more concrete 3667
4.1 Calibrated macroeconomic models 3667
4.2 Calibrated microeconomic models 3671
4.3 Deficiencies of micro calibration 3677
4.4 Some recent examples of calibrations 3677
5 Best practice in calibration 3684
5.1 The choice of model for calibration 3684
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