Title :
Aggregation problem in DSGE model
Author :
Lian-Sheng Yang; Shu-Heng Chen; Chia-Ling Chang; Yi-Heng Tseng
Author_Institution :
School of Economic Management, Nanjing University of Science and Technology, 200, Xiaolingwei Rd., 210094, China
Abstract :
The aim of this paper is investigating the estimation bias of the standard New Keynesian DSGE econometric procedure in an environment comprising heterogeneous and interactive agents. In this case, the standard New Keynesian DSGE econometric procedures may generate spurious evidence in aggregate equations. On simulating the Ising model and processing the standard New Keynesian DSGE econometric procedure with Dynare, dramatic estimation bias is found. Particularly, the IS puzzle is found in the Ising model with different network structures.
Keywords :
"Social network services","Chlorine","Sociology","Statistics"
Conference_Titel :
Behavioral, Economic and Socio-cultural Computing (BESC), 2015 International Conference on
DOI :
10.1109/BESC.2015.7365969
