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 ...
- 550
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 ...
- 176
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 ...
- 15.8k
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 ...
- 2,373
2
votes
CARA Coefficient Calculation
Implementing the "affine transformation", let $$u(x) = A-B\exp\{-\lambda x\}$$
Then we want to solve $(x_1 = 2400, x_2 = 5000)$
$$A-B\exp\{-\lambda x_1\} = \frac 12 \Big[A-B\exp\{-\lambda x_2\}\Big]+...
- 33.9k
2
votes
Accepted
Value function iteration savings problem not working as expected
In the last line of the outer loop, you are updating V0 by assigning V1 to it. However, doing so will make the ...
- 191
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 ...
- 41
2
votes
What are macro-economics simulations horizons and limits possible with exascale computing?
Some example of large macro models would be the the World Banks macro-fiscal model or Smets-Wouters DSGE model.
How will having access to high computing power change the models is very opinion based ...
- 57.7k
1
vote
Stable marriage problem with transferable utilities
There's two implementations that should somewhat cover your needs, matchingR which does reduced-form algorithmic matching and ...
- 778
1
vote
Opportunities for Computer Science Graduates in the Field of Economics
As a CS graduate how much struggle I am to face in this field? What will be the best way to approach this field as a newcomer?
You'll probably struggle in the econometrics and statistics portion, ...
- 3,477
1
vote
Accepted
Macroeconomic model or knowledge base representing connected industries in the world
is it even possible to have such a model, even on the macro level?
Yes, it is entirely possible. There are large scale general equilibrium models that would be able to answer those sort of questions. ...
- 57.7k
1
vote
Accepted
Compute yield to maturity for a bond with coupons when price is different from face value
There might be a closed-form method that is more efficient, but in practice, bond market calculations have a lot of irregularities when compared to the pricing formula given above.
As an addendum, if ...
- 9,907
1
vote
Compute yield to maturity for a bond with coupons when price is different from face value
Following the suggestion by Brian Romanchuk of the 'quick and dirty' bisection method in the comments, I wrote this python program to estimate the yield to maturity :
...
- 282
1
vote
What are macro-economics simulations horizons and limits possible with exascale computing?
Just to add to @1muflon1's point: availability and standardization of data aside, the mere ability to run more detailed models can potentially have drastic effects on output. In complex systems, ...
- 1,806
1
vote
Simplest model of an economy exhibiting (hyper)inflation
I agree with Guy that your model is simplistic. My own position is that hyper-inflation is first and foremost a political phenomenon. It results out of specific political policies and choices.
In ...
- 486
1
vote
Could markets compute equilibria?
Check out Maymin (2009), who shows that if markets are weak-form efficient, meaning current prices fully reflect all information available in past prices, then $P = NP$, meaning every computational ...
- 225
1
vote
What are some examples of modern economic research that integrate economics and computer science?
I can try to give a bunch of examples about specific branches in economics that have been reshaped by computer science over the last decade, but I will leave this to the ones that are more ...
- 231
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vote
What resources are available for learning Dynare?
Here is a collection of 38 models implemented in Dynare. As the page states:
It includes small, medium- and large-scale models of the United States, the Euro Area, Canada, and several small , ...
- 8,611
1
vote
Accepted
Converting per capita growth rates for subgroups into contribution to total per capita growth rate
If the initial populations are $p_1,p_2,p_3,p_4$ and the population growth rates are $g_1,g_2,g_3,g_4$ and the initial per capita debts are $d_1,d_2,d_3,d_4$ and the growth in per capita debts are $...
- 4,765
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vote
Converting per capita growth rates for subgroups into contribution to total per capita growth rate
The problem is that you've got two inconsistent definitions of growth rate.
One is driven by per capita debt across the whole population.
The other by per capita debt within each subgroup.
These ...
- 8,168
1
vote
Matlab code example for piecewise linear approximation and Euler Equation Iteration
I wrote some simple Matlab code which solves a stochastic optimal growth model via Euler function (Coleman policy) iteration, and then again with value function iteration. You can find here.
I ...
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