Economics Dictionary of ArgumentsHome
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| Calibration: Calibration in economics is a method of assigning values to model parameters so that the model closely replicates real-world data. Unlike estimation, it uses observed values directly rather than statistical inference. Calibration is commonly used in dynamic macroeconomic and computable general equilibrium (CGE) models to analyze policy impacts and economic behavior. See also Models, Model theory._____________Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments. | |||
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Gernot Klepper on Calibration - Dictionary of Arguments
Calibration/Klepper: Commonly, producer cost differences are calibrated according to market shares: a producer with a large market share is presumed to have lower costs. The source of such cost differences remains unexplained. In this paper(1), it is assumed that technical know-how is available equally to all producers and that factor prices do not deviate greatly between Europe and North America. Krugman III 103 The question then is, can the existing segments market shares and those which are expected for the coming years be reasonably explained without factor price or technological differences? We show that this is possible by accounting for different times of market entry in the three market segments by two producers: a newcomer and an incumbent. Yet, if the model is calibrated to such a situation, the claim of Airbus officials that Airbus will become profitable as soon as it can supply a complete family of aircraft can not be supported by the simulations. >Models, >Model theory, >Economic models, >Simulation, >International trade, >Competition, >Trade policy, >Industrial policy, >New trade theory. 1. Gernot Klepper. „Industrial Policy in the Transport Aircraft Industry.“ In: Paul Krugman and Alasdair Smith (Eds.) 1994. Empirical Studies of Strategic Trade Policy. Chicago: The University of Chicago Press. Gernot Klepper. „Industrial Policy in the Transport Aircraft Industry.“ In: Paul Krugman and Alasdair Smith (Eds.) 1994. Empirical Studies of Strategic Trade Policy. Chicago: The University of Chicago Press._____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. Translations: Dictionary of Arguments The note [Concept/Author], [Author1]Vs[Author2] or [Author]Vs[term] resp. "problem:"/"solution:", "old:"/"new:" and "thesis:" is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition. |
Klepper, Gernot EconKrug I Paul Krugman Volkswirtschaftslehre Stuttgart 2017 EconKrug II Paul Krugman Robin Wells Microeconomics New York 2014 Krugman III Paul Krugman Alasdair Smith Empirical Studies of Strategic Trade Policy Chicago: The University of Chicago Press 1994 |
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