"Estimating the Uncertainty of Policy Effects in Nonlinear
Econometrica, September 1980, 1381-1391.
pdf file (1,417KB).
An important change in the method is discussed in Chapter 10, Section 10.2, in 1994#2. The original method required that a stochastic simulation be done within a stochastic simulation, and in 1984 S.G. Hall pointed out in private correspondence that this is not required. The method that is discussed in Section 10.2 in 1994#2 incorporates Hall's suggestion, and so this section is a replacement for the earlier discussions. The newer method is used in Chapter 11, Section 11.3, in 1994#2.
The method (i.e., the newer method) is programmed into the Fair-Parke program, where the command is STOMULT.