Effective teaching of computational methods to economists in an introductory graduate-level course requires difficult choices regarding the material to be covered, the level at which the material will be covered, and the role of assigned exercises, laboratory sessions, and required readings. In...

The paper develops a method for solving heterogeneous agent models in which the distribution of characteristics across agents is a state variable and the distribution can be discontinuous at points that vary endogenously. The method extends the approach of [Tauchen, George and Robert Hussey,...

A framework for describing nonlinear rational expectation models is developed that synthesizes previously described approaches. Computational issues for solving such models include how the expectation operator is approximated, what family of approximation is used for the solution function, what...