Aiyagari, S. Rao; McGrattan, Ellen R. - In: Annals of Economics and Finance 4 (2003) 1, pp. 193-217
We describe the numerical method used to compute equilibria in the economies studied by Aiyagari and McGrattan, The Optimum Quantity of Debt (Journal of Monetary Economics 1998). These economies have a large number of infinitely lived households whose saving behavior is influenced by...