Thank you for the kind words and the useful feedback!
My understanding is that calibration is picking numbers for parameters in a otherwise pre-defined model to make it match the real world, and what you’re describing I think of as estimation rather than calibration. I’ll add a footnote to make my use of the word a little clearer!
You’re right on the validity of the Bouyssou et al. (2024) paper. There are quite some differences in the measured elasticity estimates in the literature, unfortunately. I’m more worried about the own-price elasticity of supply, though, as the literature is much more scarce and old.
Thank you for the kind words and the useful feedback!
My understanding is that calibration is picking numbers for parameters in a otherwise pre-defined model to make it match the real world, and what you’re describing I think of as estimation rather than calibration. I’ll add a footnote to make my use of the word a little clearer!
You’re right on the validity of the Bouyssou et al. (2024) paper. There are quite some differences in the measured elasticity estimates in the literature, unfortunately. I’m more worried about the own-price elasticity of supply, though, as the literature is much more scarce and old.