Exploiting MIT Shocks in Heterogeneous-Agent Economies: The Impulse Response as a Numerical Derivative
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DOI: 10.1016/j.jedc.2018.01.002
Abstract: We propose a new method for computing equilibria in heterogeneous-agent models with aggregate uncertainty. The idea relies on an assumption that linearization offers a good approximation; we share this assumption with existing linearization methods. However,… read more here.
Keywords: impulse response; numerical derivative; response; linearization ... See more keywords