2020/04/25 by Thomas Høgholm Jørgensen, Thomas H. Jørgensen, Jørgensen, Thomas H.
Economics, Econometrics and Finance · #Climate Change Policy and Economics #Econometrics (econ.EM) #FOS: Economics and business #Fiscal Policy and Economic Growth #Monetary Policy and Economic Impact #econ.EM
paper · pdf · doi:10.48550/arxiv.2004.12100
openalex publication_date 2020/04/25 · arxiv created 2021/03/15 · arxiv updated 2021/03/16 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28
A common approach to estimation of economic models is to calibrate a sub-set of model parameters and keep them fixed when estimating the remaining parameters. Calibrated parameters likely affect conclusions based on the model but estimation time often makes a systematic investigation of the sensitivity to calibrated parameters infeasible. I propose a simple and computationally low-cost measure of the sensitivity of parameters and other objects of interest to the calibrated parameters. In the main empirical application, I revisit the analysis of life-cycle savings motives in Gourinchas and Parker (2002) and show that some estimates are sensitive to calibrations.