Indeterminacy, Nonparametric Calibration and Counterfactual Equilibria
Abstract
We propose a nonparametric approach to multiple calibration of numerical general equilibrium models, where counterfactual equilibria are solutions to the Walrasian inequalities. We present efficient approximation schemes for deciding the solvability of Walrasian inequalities.
Keywords: Applied general equilibrium analysis, Walrasian inequalities, O-minimal structures, Monte Carlo algorithms