Problems in the numerical simulation of models with heterogeneous agents and economic distortions

Adrian Peralta-Alva, Manuel S. Santos

Research output: Contribution to journalArticle

8 Scopus citations

Abstract

Our 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 forthin Fengetal.(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.

Original languageEnglish (US)
Pages (from-to)617-625
Number of pages9
JournalJournal of the European Economic Association
Volume8
Issue number2-3
DOIs
StatePublished - Jan 1 2010

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)

Fingerprint Dive into the research topics of 'Problems in the numerical simulation of models with heterogeneous agents and economic distortions'. Together they form a unique fingerprint.

  • Cite this