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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: Since many uses in economics are routines, having the program doing these for you and making your implementation of the use easier is a big bonus Adaptability: A ...

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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 Journal of Political Economy in the years 2000-2013. Stata was used by far most often (>900 times), followed by MATLAB (280), SAS (60), GAUSS (60), Excel (50), R ...

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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 Pandas, Scipy, Numpy, Sympy etc., and machine learning packages. Recently Julia. May be also C++ or Java as object-oriented languages (just to mention). ...

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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 the special case of singleton congestion games with player-specific payoff functions. And yes, they can be computed in polynomial time. See Corollary 7 in: ...

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@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 series, and New Palgrave Dictionary of Economics The Handbooks series has three very nice volumes that cover a broad range of "what computational economics is;"...

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Taken right from the society for computational economics: Computational economics explores the intersection of economics and computation. These areas include agent-based computational modeling, computational econometrics and statistics, computational finance, computational modeling of dynamic macroeconomic systems, computational tools for the ...

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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 $u=0.05$. This is achieved for $k=7.41$ (rounded). Moreover, with this value of $k$, I get a second (but not a third) steady state. A close up diagram : This still is ...

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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 which state $i$ transitions to all other states. Each row of $B$ sums to 0. Then if $p(t)$ denotes the probability distribution at time $t$, by definition of $... 5 From my experience (buy-side economist role), Eviews - the GUI is very convenient to deal with the most of the daily tasks e.g. updating econometrics models and forecasts; and its continuously improving interface with external databases make my life much easier R / Matlab - easy for monte carlo simulation and dealing with financial data and stochastics ... 5 Short answer: no. Dynare, and linearization/perturbation methods in general, are designed for solving smooth models approximated around a single point in state space (the steady state). A model with fixed cost is typically non-smooth, and its behavior away from the steady state may be very different, if e.g. the firm switches from investing to not ... 4 Expanding on jmbejara's answer and your question about integration, there are really three steps here: Solve the HJB equation$\rho V(k) = \max_c g(c)+V'(k)(z-c)$. (You're already done this.) Obtain the policy function$c(k)=\text{argmax}_c g(c)+V'(k)(z-c)$. (You presumably already did this while solving the HJB.) Substitute$c(k)$into the law of motion ... 4 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 one. Thus, you can first generate equally spaced grid, and then use the inverse function of Beta c.d.f to map the grid to unequally spaced grid. You can change ... 4 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 you don't know the difference between a vector image and a raster image then you should look that up before starting). PGF TikZ / PGFplots. This is my ... 4 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 process. Given prices, each individual needs to compute her net demand correspondence. Under different tatonement mechanisms, which are an idealization of the ... 3 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 the basis of much of his Nobel prize work on climate change is a GAMS model. As a consequence so is most of the follow-up research. On a personal note I ... 3 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, different simulation options, interpreting output, and how to do higher order approximations. Full code is included for each step in the notes. 3 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 economists (tenured faculty, say) I see a surprising amount of fortran for these applications. C++ may be more popular among younger economists for the same job, but ... 3 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 software, LaTeX is a programming language used to format documents for presentation. 3 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 of before. There is also some python involved. In my experience (anecdotal), the finance sector uses excel a lot. 3 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 Dynare or not. Is the steady-state correctly defined? Is the model stationary? Is the model differentiable everywhere in the ergodic set? Are the number of ... 3 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 tried them all), but my recommendation is something that hasn't been mentioned: Inkscape: Inkscape is a free, open source software similar to Adobe Illustrator. ... 3 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 1990). The process will converge to a steady state, which is the equilbrium. What this means is that actors do not need to know anything about the market ... 3 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 player in a separate program such as Matlab/R/Excel, and then export the resulting matrix to Gambit where the BNEs can be calculated. This way, you may be able ... 2 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 give the impression that it contains some continuous time simulation method. It really doesn't -see the description of their algorithm in the Appendix, page 30. ... 2 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 essentially the method explored in On the Computation of Continuous Time Option Prices Using Discrete Approximations (Amin (1991)) We develop a class of ...

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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 don't know to what extent Moll et al's algorithm is going to get that right. You will most likely get weird behavior around the kink, but whether it's the real ...

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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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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 page 4. The computations are provided for estimating the coefficients of a CAR(2) process from an AR(2) process, but of course you can substitute a 0 for the ...

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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 read the associated notes, also. The code makes use of the CompEcon toolbox in Matlab, by Miranda and Fackler (associated with their book: Applied Computational ...

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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 geared towards programming than John's Economic Dynamics book and can be found (for free) online at http://quant-econ.net/. All of the book's code is on github and ...

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