/Heterogeneous-Agent-Macro-Model

Computational Method for Solving Heterogeneous Agents Macro Models

Primary LanguagePython

Heterogeneous_Agent_Macro_Model

Computational method for solving heterogeneous agents macro models where the distribution is a state variable. The key challenge is that the aggregate state vector contains the distribution of agents which is infinite-dimensional. To deal with it, we can approximate the distribution with a parametric family and solve the endogenous parameters by perturbation.