Estimation errors in dynamic stochastic general equilibrium models.

Abstract

Today, economic growth has stimulated the need to establish a procedure for measuring the level of impact of tourism development. In order to quantify this impact, a large number of studies have used dynamic stochastic general equilibrium macroeconomic tools, in particular Dynamic Stochastic General Equilibrium (DSGE) models. In recent years there has been a growing interest in the development of these types of models because they provide a theoretical and structural explanation of macroeconomic relationships. The published research on the connection framework of the two variables only refers to the estimation of these models using Bayesian methodology, which has some estimation errors. Therefore, this study aims to address the problems of the Bayesian method in providing accurate estimates.