binding constraints. These constraints induce non-differentiabilities in policy functions. We develop an interpolation …We propose a method to compute equilibria in dynamic models with several continuous state variables and occasionally …

constraints were always (i.e., for all periods) binding for the same subset of agents. The feature of occasionally binding … constraints also makes our model challenging from a computational point of view. To this end, we implement a collocation version …

occasionally binding constraints on capacity utilization which can account for state-dependent cross-country correlations in GDP …