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Computing Equilibria in Dynamic Models with Occasionally Binding Constraints

We embed it into a time iteration algorithm to compute recursive equilibria in an infinite horizon endowment economy where heterogeneous agents trade in various assets subject to collateral constraints and short sale constraints. We show that adaptive simplicial interpolation computes equilibria accurately in terms of Euler equation errors and outperforms equidistant grid schemes by far.
Year of publication:
2010
Authors: Grill, Michael ; Brumm, Johannes
Institutions: Society for Economic Dynamics - SED
Extent:
application/pdf
Series:
Type of publication: Book / Working Paper
Notes:
The text is part of a series 2010 SED Meeting Papers Number 695
Source:
Persistent link: https://www.econbiz.de/10011080859
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