Problems in the numerical simulation of models with heterogeneous agents and economic distortions
AbstractOur work has been concerned with the numerical simulation of dynamic economies with heterogeneous agents and economic distortions. Recent research has drawn attention to inherent difficulties in the computation of competitive equilibria for these economies: A continuous Markovian solution may fail to exist, and some commonly used numerical algorithms may not deliver accurate approximations. We consider a reliable algorithm set forth in Feng et al. (2009), and discuss problems related to the existence and computation of Markovian equilibria, as well as convergence and accuracy properties. We offer new insights into numerical simulation.
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Bibliographic InfoPaper provided by Federal Reserve Bank of St. Louis in its series Working Papers with number 2009-036.
Date of creation: 2009
Date of revision:
Other versions of this item:
- Adrian Peralta-Alva & Manuel S. Santos, 2010. "Problems in the Numerical Simulation of Models with Heterogeneous Agents and Economic Distortions," Journal of the European Economic Association, MIT Press, vol. 8(2-3), pages 617-625, 04-05.
- Adrian Peralta - Alva & Manuel S. Santos, 2009. "Problems in the Numerical Simulation of Models with Heterogeneous Agents and Economic Distortions," Working Papers 2010-14, University of Miami, Department of Economics.
- C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
- D5 - Microeconomics - - General Equilibrium and Disequilibrium
- E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-09-26 (All new papers)
- NEP-CMP-2009-09-26 (Computational Economics)
- NEP-DGE-2009-09-26 (Dynamic General Equilibrium)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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