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This repository solves the Aiyagari model with aggregate uncertainty

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Aiyagari Aggregate Uncertainty

This repository solves the Aiyagari model (1994) with aggregate uncertainty.

Notebook

https://github.com/JulienPascal/AiyagariAggregateUncertainty/blob/master/AiyagariBKM.ipynb

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References

  • Aiyagari, S. Rao. "Uninsured idiosyncratic risk and aggregate saving." The Quarterly Journal of Economics 109.3 (1994): 659-684.
  • Bewley, Truman. "A difficulty with the optimum quantity of money." Econometrica: Journal of the Econometric Society (1983): 1485-1504.
  • Boppart, Timo, Per Krusell, and Kurt Mitman. “Exploiting MIT shocks in heterogeneous-agent economies: the impulse response as a numerical derivative.” Journal of Economic Dynamics and Control 89 (2018): 68-92.
  • Christopher D Carroll. The method of endogenous gridpoints for solving dynamic stochastic optimization problems. Economics Letters, 91(3):312–320, 2006.
  • Coeurdacier, Nicolas, Helene Rey, and Pablo Winant. "The risky steady state." American Economic Review 101.3 (2011): 398-401.
  • Huggett, Mark. "The risk-free rate in heterogeneous-agent incomplete-insurance economies." Journal of economic Dynamics and Control 17.5-6 (1993): 953-969.
  • İmrohoroğlu, Ayşe. "The welfare cost of inflation under imperfect insurance." Journal of Economic Dynamics and Control 16.1 (1992): 79-91.
  • Ljungqvist, Lars, and Thomas J. Sargent. Recursive macroeconomic theory. MIT press, 2018.
  • Reiter, Michael. “Comments on” Exploiting MIT Shocks in Heterogeneous-Agent Economies: The Impulse Response as a Numerical Derivative” by T. Boppart, P. Krusell and K. Mitman.” Journal of Economic Dynamics and Control 89 (2018): 93-99.

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