Abstract
This paper applies a simple approximation procedure to the calculation of systematic sensitivity results for a well-known computable general equilibrium model. The approximation (based on Pagan and Shannon (1985)) is found to be very accurate and requires little computing time.
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The author would like to thank, without implicating, John Whalley, Glenn Harrison, Jean Waelbroeck, Peter Dixon, and Rich Jones for helpful comments. The University of Saskatchewan, Dean of Arts, provided financial assistance.
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Wigle, R.M. The Pagan-Shannon approximation: Unconditional systematic sensitivity in minutes. Empirical Economics 16, 35–49 (1991). https://doi.org/10.1007/BF01205344
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DOI: https://doi.org/10.1007/BF01205344