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Quantitative Economics

3 papers tracked 0 forthcoming 3 classics
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Published Classic Quantitative Economics Online 1 Nov 2020 Published Nov 2020
Solving discrete time heterogeneous agent models with aggregate risk and many idiosyncratic states by perturbation

Christian Bayer · Ralph Luetticke

A solution method for discrete-time heterogeneous-agent models with aggregate risk that extends Reiter's perturbation approach by compressing the state space after the no-aggregate-risk stationary …