Solving the incomplete markets model with aggregate uncertainty using the Krusell-Smith algorithm and non-stochastic simulations
This article describes the approach to computing the version of the stochastic growth model with idiosyncratic and aggregate risk that relies on collapsing the aggregate state space down to a small number of moments used to forecast future prices. One innovation relative to most of the literature is the use of a non-stochastic simulation routine.
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Volume (Year): 34 (2010)
Issue (Month): 1 (January)
Pages: 36-41
| Handle: | RePEc:eee:dyncon:v:34:y:2010:i:1:p:36-41 |
| Contact details of provider: | Web page: http://www.elsevier.com/locate/jedc
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