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Looking for guide to Industrial Organization numerical modeling in Python

Is there some guide or GitHub repository that shows how to program numerical version of IO models? I would like to learn how to simulate the general $n$-firm Cournot competition model, but I can ...
csilvia's user avatar
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Scale in value function iteration

The following Julia code is one step in value function iteration. I was trying to understand why we can rescale the profits in calculating the value function (for a general equilibrium model). In the ...
jgr's user avatar
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How to numerically approximate a function?

what are some numerical analysis techniques that I can use to approximate functions? For example, say I've got the demand equation $$q = a p^b + c p^d$$ and I want to find the price that clears the ...
NuancedPaul's user avatar
4 votes
1 answer

Reference request: a book on numerically solving DSGE models with code

I am new to the area of DSGE modelling, and programming DSGE models. I was hoping that someone could recommend a book on DSGE modelling, that presents the different model components as well as code ...
krishnab's user avatar
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For the cost function question (equation in image), I have found TVC as AVC*P. However the MC curve derived is giving imaginary number solution

For the cost function question (equation in image), I have found TVC as AVC*P. However MC curve is showing an imaginary number as solution.
VAISHAKH NAIR's user avatar
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Need help with numerical implementation of a model

I am toying around with a capital structure model that looks as follows: $\sup_{D_{t}(A_{t}),K_{t}}\int_{B_{L}}^{B_{H}}(1-\kappa_{t})\pi(t,A_{t},K_{t},B_{t})g_{t}(B_{t})dB_{t}+\kappa_{t}D_{t}(A_{t})[1-...
user41131's user avatar
1 vote
2 answers

Solving a system of equations using R

I'm trying to use R for my Macro practise and model solve for the equilibrium price where the inverse demand curve PD(q) and supply curve P. How do i do this? Thanks!
user avatar
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Percent change vs difference in logs: Which to prefer when forcasting non-stationary series with rare large excursions?

One of the most common ways to convert a non-stationary time series into a stationary one is to take the difference in logs. This is approximately equal to the percentage change for small changes, and ...
andrewH's user avatar
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A question on the Reiter method

I am confused about how individual decision rules are approximated via the Reiter method. In particular, on page 653 of Reiter (2009) (JEDC), the link is:
TomG's user avatar
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Employing numerical techniques for Hotellings location model

I am trying to program a numerical solution for Hotellings locational model (with regards to the firms' respective locations). However, I have very little experience with numerical techniques. Let's ...
Layman Tucker's user avatar
5 votes
0 answers

Solution to Dynamic Programming (Bellman Equation) Problem

Could someone please provide pointers on how to solve the below? If any theoretical approximations are possible, that would be very helpful. If numerical solutions are the right approach, could you ...
user249613's user avatar
1 vote
0 answers

How To Program Finite General Equilibrium Models

I am wondering the best way to find a numerical solution to a finite general equilibrium model with Matlab. The model is a basic neoclassical growth model with equilibrium equations: $c_t+k_{t+1}=k_t(...
MathStudent's user avatar
3 votes
1 answer

Value function iterations with hyperbolic discounting

I am currently working to the numerical solution of a model similar to the consumption-savings decision model with hyperbolic discounting as in Krussel et al. (2003). Even if hyperbolic discounting ...
Luca Gi's user avatar
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15 votes
1 answer

Stochastic growth in continuous time

Literature: See Chang (1988) for theoretical part and Achdou et al. (2015) for numerical part respectively. Model Consider the following stochastic optimal growth problem in per capita notation. \...
clueless's user avatar
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4 votes
3 answers

Numerical analysis in economics

Recently, I have become interested in numerical analysis withinin macroeconomics. In particular, I have been trying to learn algorithms such as "backwards iteration", the "shooting method" etc, in ...
optimal control's user avatar