GTAP Resources: Resource Display
| GTAP Resource #674 |
|---|
|
"Taste Parameters as Model Residuals: Assessing the 'fit' of an Armington Trade Model" by Hillberry, Russell, Michael Anderson, Edward J. Balistreri and Alan Fox Abstract We note that calibration parameters in a multi-country Armington trade model play a role similar to that of econometric residuals: they allow the model to fit the data exactly. We use this premise to evaluate the "fit" of a standard multi-country computable general-equilibrium model. We find that the model relies heavily on these parameters to explain the pattern of trade. In 33 of the 46 commodity groups we assess, modeled economic behavior explains less than 20% of the variation in bilateral trade. In a calibration- as-estimation experiment, we estimate the commodity-specific elasticities of substitution consistent with a well-fitting model and find that they are substantially higher than widely accepted estimates. |
| Resource Details (Export Citation) | GTAP Keywords | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
- Calibration and parameter estimation |
| Attachments |
|---|
|
If you have trouble accessing any of the attachments below due to disability, please contact the authors listed above.
Public Access  GTAP Resource 674 (130.2 KB) Replicated: 0 time(s)Restricted Access No documents have been attached. Special Instructions Please cite the final, published, version of this paper. Visit the journal's home page at the following address: http://www.blackwellpublishing.com/journal.asp?ref=0965-7576 |
| Comments (0 posted) |
|---|
|
You must log in before entering comments.
No comments have been posted. |
Last Modified: 9/15/2023 2:05:45 PM
