tag:blogger.com,1999:blog-4900303239154048192.post1739815965505112843..comments2024-03-06T06:34:42.881-05:00Comments on EconoSpeak: Are People Being Mean To Those Doing DSGE Models, Or Is It The Other Way Around?Unknownnoreply@blogger.comBlogger2125tag:blogger.com,1999:blog-4900303239154048192.post-13488266890709479752014-01-14T14:01:33.865-05:002014-01-14T14:01:33.865-05:00Barkley, I should point out that there are CGE mod...Barkley, I should point out that there are CGE models used for macro/international analysis. Admittedly, this is a minority, but not so much because it is uncommon, but rather because the data requirements for running a credible global macro CGE model are so significant that only a few institutions with large staff are able to routinely maintain such things (we do at the World Bank, and have used such models to engage topics ranging from macro impacts of global climate change to the future evolution of global saving and investment). Add to the high startup and maintenance costs the fact that CGE models seldom get featured in top journals and we see why the cost-benefit payoff skews so heavily away from CGE modeling. Final minor point: CGE models tend to be recursively dynamic, in the sense that dynamics in these models hinge on accumulation equations that pass period-optimized equilibrium outcomes to the next period, rather than solving an infinite-horizon stochastic optimization problem as in DSGE models.Jamushttps://www.blogger.com/profile/12152830848745840129noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-72211787474106098112014-01-14T13:04:48.808-05:002014-01-14T13:04:48.808-05:00Thanks for hoisting me out of the "devalue an...Thanks for hoisting me out of the "devalue and dismiss" dilemma of whether or not to learn DSGE. In real life, I have been trying to deal with nutrition in Brazil, where virtually all the models are CGE. The Wikipedia entry for CGE explains why. <br /><br />Problem is, the standard consumer elasticity assumptions don't hold at micro level. So it is the same dilemma either way!Ronald Calitrihttps://www.blogger.com/profile/07206853993777529429noreply@blogger.com