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@ARTICLE{Armington:1969,
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AUTHOR = {Paul S. Armington},
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@INCOLLECTION{AuerbachKotlikoff:1983b,
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@ARTICLE{AuerbachEtAl:1983,
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@ARTICLE{DuffieSingleton:1993,
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@ARTICLE{EilersMarx:1996,
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@ARTICLE{Geary:1950,
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docs/book/_toc.yml

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- caption: Structural Estimation
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chapters:
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- file: struct_est/intro
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- file: struct_est/MaxLikelihood
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- file: struct_est/SMM
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- caption: Appendix
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(Chap_MaxLikeli)=
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# Maximum Likelihood Estimation
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(SecMaxLikeliFootnotes)=
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## Footnotes
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<!-- [^citation_note]: See {cite}`AuerbachEtAl:1981,AuerbachEtAl:1983`, {cite}`AuerbachKotlikoff:1983a,AuerbachKotlikoff:1983b,AuerbachKotlikoff:1983c`, and {cite}`AuerbachKotlikoff:1985`. -->

docs/book/struct_est/SMM.md

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(Chap_SMM)=
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# Simulated Method of Moments
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This chapter describes the simulated method of moments (SMM) estimation method. All data and images from this chapter can be found in the data directory ([]./data/smm/](https://github.com/OpenSourceEcon/CompMethods/tree/main/data/smm/)) and images directory ([]./images/smm/](https://github.com/OpenSourceEcon/CompMethods/tree/main/images/smm/)) for the GitHub repository for this book.
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## The SMM estimator
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Simulated method of moments (SMM) is analogous to the generalized method of moments (GMM) estimator. SMM could really be thought of as a particular type of GMM estimator. The SMM estimator chooses model parameters $\theta$ to make simulated model moments match data moments. Seminal papers developing SMM are {cite}`McFadden:1989`, {cite}`LeeIngram:1991`, and {cite}`DuffieSingleton:1993`. Good textbook treatments of SMM are found in {cite}`AddaCooper:2003`, (pp. 87-100) and {cite}`DavidsonMacKinnon:2004`, (pp. 383-394).
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In the {ref}`Chap_MaxLikeli` chapter, we used data $x$ and model parameters $\theta$ to maximize the likelihood of drawing that data $x$ from the model given parameters $\theta$.
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(SecSMMFootnotes)=

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