This setting lets you change the way you view articles. You can choose to have articles open in a dialog window, a new tab, or directly in the same window.
Open in Dialog
Open in New Tab
Open in same window

Journal of Economic Perspectives: Vol. 10 No. 1 (Winter 1996)


Quick Tools:

Print Article Summary
Export Citation
Sign up for Email Alerts Follow us on Twitter


JEP - All Issues

The Computational Experiment: An Econometric Tool

Article Citation

Kydland, Finn E., and Edward C. Prescott. 1996. "The Computational Experiment: An Econometric Tool." Journal of Economic Perspectives, 10(1): 69-85.

DOI: 10.1257/jep.10.1.69


An economic experiment places people in an environment desired by the experimenter, who then records the time paths of their economic behavior. Performing experiments using actual people at the level of national economies is obviously impractical but constructing a model economy and computing the economic behavior of the model's people is. Such experiments are termed 'computational' because economic behavior of the model's people is computed. This essay specifies the steps in designing a computational experiment to address some well-posed quantitative question. The computational experiment is an econometric tool used in the task of deriving the quantitative implications of theory.

Article Full-Text Access

Full-text Article (Complimentary)


Kydland, Finn E. (Carnegie-Mellon U and Federal Reserve Bank of Cleveland)
Prescott, Edward C. (U MN and Federal Reserve Bank of Minneapolis)

JEL Classifications

C50: Econometric Modeling: General
E32: Business Fluctuations; Cycles


View Comments on This Article (0) | Login to post a comment

Journal of Economic Perspectives

Quick Tools:

Sign up for Email Alerts

Follow us on Twitter

Subscription Information
(Institutional Administrator Access)


JEP - All Issues

Virtual Field Journals

AEA Member Login:

AEAweb | AEA Journals | Contact Us