17 votes

Most common programs used by Economists

There's three important dimensions for programs/languages: Convention: Having a program that everyone uses helps you to get feedback/help, work with coauthors, use other people's codes Ease of use: ...
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16 votes

Most common programs used by Economists

In the ReplicationWiki (that I work on) we have a list of software packages that were used in more than 2000 empirical studies, mainly in the American Economic Review, American Economic Journals and ...
12 votes

Most common programs used by Economists

For a general overview, let’s consider a following list: Statistical Analysis: R (R Studio as IDE), Stata, SAS/Stat and IBM SPSS. Some general purpose languages: Python, including key packages like ...
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8 votes
Accepted

Is there always a pure Nash equilibrium in a resource selection game?

Yes, there is always a pure Nash equilibrium. See: I Milchtaich (1996). Congestion games with player-specific payoff functions. Games and economic behavior 13 (1), 111-124. You are interested in ...
6 votes

Computational economics

@Foobar provides an excellent reference. Whenever I am looking into a new area of economics, I generally check two places almost immediately (after google, of course :) The Handbooks in Economics ...
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6 votes

Computational economics

Taken right from the society for computational economics: Computational economics explores the intersection of economics and computation. These areas include agent-based computational modeling, ...
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6 votes
Accepted

Solving Kaplan and Menzio: Shopping Time

UPDATE After e-mail communication with one of the authors G.W.Kaplan, I recalibrated the value of the vacancy-posting cost parameter $k$ in order to obtain a cross of the two nullclines for $u=0.05$. ...
6 votes
Accepted

Transition Matrix: Discrete -> Continuous Time

Suppose $B$ is an $n\times n$ matrix of Poisson transition rates, where $B_{ij}\geq 0$ for $i\neq j$ denotes the rate at which state $i$ transitions to state $j$, and $B_{ii}\leq 0$ gives the rate at ...
5 votes

Most common programs used by Economists

From my experience (buy-side economist role), Eviews - the GUI is very convenient to deal with the most of the daily tasks e.g. updating econometrics models and forecasts; and its continuously ...
  • 51
5 votes

Can Dynare solve general equilibrium (GE) models with non-convex adjustment costs?

Short answer: no. Dynare, and linearization/perturbation methods in general, are designed for solving smooth models approximated around a single point in state space (the steady state). A model ...
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4 votes
Accepted

Simulating a Hamilton-Jacobi-Bellman

Expanding on jmbejara's answer and your question about integration, there are really three steps here: Solve the HJB equation $\rho V(k) = \max_c g(c)+V'(k)(z-c)$. (You're already done this.) Obtain ...
4 votes

How to make unequally spaced grid?

One quick way to do this is through inverting a distribution c.d.f.. For example, the distribution Beta(alpha,beta) has density concentrated at small and large values when alpha and beta are less than ...
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4 votes

Create simple graphs without functional forms

My main suggestions would be: Adobe Illustrator, which will let you draw graphs freehand. This is a very powerful professional illustration tool that will allow you to produce crisp vector images (if ...
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4 votes

Could markets compute equilibria?

Computing an equilibrium is not needed for implementing it. This was the mistake of Lange and co. and was decisively rebutted by Hayek. If you want a mathematical formulation, simply take a tatonement ...
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3 votes

Most common programs used by Economists

Just as an addition to all mentioned above and because the original question is about environmental economics: in that context GAMS is used quite a bit. In fact Nordhaus celebrated DICE model that is ...
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3 votes

What resources are available for learning Dynare?

Eric Sims at Notre Dame has an excellent set of self contained notes. He uses a small neoclassical model as an example and goes over the model derivation, how to construct each block of Dynare code, ...
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3 votes

Most common programs used by Economists

Just to add to what is here, a lot of economists who do heavy work (dynamic programming, structural estimation) can't get away with using a language like Matlab that isn't compiled. From older ...
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3 votes

Most common programs used by Economists

To add to the anecdotal evidence collection, I also have experienced that Stata is the most standard stats software. EViews is another option. As for other programs, beside statistical analysis ...
3 votes

Most common programs used by Economists

This really depends on your school or profession as to what is most prevalent. Professors at my school seem to use mostly Matlab and Stata. Some subjects even require GAUSS, which I had never heard ...
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3 votes

Can Dynare solve general equilibrium (GE) models with non-convex adjustment costs?

It is generally not possible to make a sharp statement about the types of non-convex costs that Dynare can handle. Many different factors come into play about whether a model can be "solved" by ...
  • 714
3 votes

Create simple graphs without functional forms

Ah, this is a question I have struggled with. I think the answer depends wether you are intending to use the image in LaTeX or not. That said, in my opinion most answers provide good solutions (I've ...
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3 votes

Could markets compute equilibria?

Generally the fixed-points of Nash Equilibria in a market can also be reached by a dynamic process where actors myopically best-reply to the market result in the last period (see Milgrom and Roberts ...
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3 votes
Accepted

Computing pure strategy Nash equilibria in finite games

If $10^{10}$ pure strategies is too large for Gambit, it'll likely be too large for any other software as well. In the comments, I suggested that you could first compute the expected payoffs for each ...
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2 votes

Simulating a Hamilton-Jacobi-Bellman

You work in discrete time, see for example this resource. Or this (incomplete) paper, where the same author participates. In the beginning the paper talks about "coarse discrete methods" and may ...
2 votes

How to approximate stochastic volatility model with finite-state Markov chain?

You could do a binomial-tree approximation to the process for $z_t$ and then have a different process control the number of steps you take on the tree. This preserves recombining property and it is ...
  • 16k
2 votes

Splittet Value Function and Hamilton-Jacobi-Bellman equation

I don't think I've seen cases with a kink in continuous time that are solved numerically. Aguiar & Amador (2014) have a kink in their HJB, but they solve their HJB analytically. Validation I ...
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2 votes

Solving Kaplan and Menzio: Shopping Time

It is possible that this issue is caused by the limits of the precision of the calculation operations. The Python package bigfloat may be of interest in ruling this out.
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2 votes

Transition Matrix: Discrete -> Continuous Time

Can't comment, or I'd ask for more specifics first. If you're trying to convert an AR(1) process fitted against a discrete time series to a continuous time process, I found a relevant resource here on ...
  • 83
2 votes

Matlab code example for piecewise linear approximation and Euler Equation Iteration

Two suggestions: First, try some of the sample code at this website. It builds simple Euler equation iteration methods from scratch in Matlab. Second, try the sample code here. You will need to ...
2 votes
Accepted

Book recommendation: agent based modeling?

Another book that comes to mind (in keeping with the 1 book per answer guideline) is the Quant-Econ book that is being put together by Tom Sargent and John Stachurski. This book is a little more ...
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Only top scored, non community-wiki answers of a minimum length are eligible