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Economia, Estatística, Programação

February 27, 2024

Simulated Based Estimation and bad models

I recently learned about simulated based estimation and we had a very interesting discussion in class about one limitation of this. I decided to come up with an example to illustrate the issue and I think it is worth sharing. This post will be in English - unlike every other post so far - because this discussion was in English. I will start explaining what simulation based estimation is to let everyone understand the example.