A fast and low computational memory algorithm for non-stochastic simulations in heterogeneous agent models

C-Tier
Journal: Economics Letters
Year: 2020
Volume: 193
Issue: C

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Heterogeneous agent models in macroeconomics generally require numerical computation of the cross-sectional distribution of agents. The standard textbook approach is to fully approximate the Markov kernel that iterates the distribution forward in time as a Markov transition matrix, which can be costly in terms of computational time and memory when the state space is large. This note provides an alternative algorithm that is simple, requires much less computational memory, and is substantially faster than the standard algorithm.

Technical Details

RePEc Handle
repec:eee:ecolet:v:193:y:2020:i:c:s0165176520301907
Journal Field
General
Author Count
1
Added to Database
2026-01-29