A Heterogeneous Agent, Indivisible Labor Model Solved By Means Of Genetic Algorithms
AbstractIn this paper, I develop an algorithm for solving heterogeneous agent dynamic models in which individual decision rules influence each other. This approach is more general than the other heterogeneous agent solution methods in that it only requires a well formed objective function. The key innovation of the algorithm is to parameterize the policy rules of the individuals and then to find the Nash equilibrium in policy rules by using genetic algorithms to evolve optimal policy responses. To illustrate the algorithm, I solve an indivisible labor model without full unemployment insurance that endogenously induces heterogeneous agents.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by EconWPA in its series Macroeconomics with number 9907007.
Length: 23 pages
Date of creation: 28 Jul 1999
Date of revision:
Note: Type of Document - Word97; pages: 23 ; figures: included
Contact details of provider:
Web page: http://18.104.22.168
Genetic Algorithms; Heterogeneous agents; indivisible labor;
Find related papers by JEL classification:
- E - Macroeconomics and Monetary Economics
You can help add them by filling out this form.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA).
If references are entirely missing, you can add them using this form.