EconPapers    
Economics at your fingertips  
 

Computation of Equilibria in OLGModels with Many Heterogeneous Households

Sebastian Rausch and Thomas Rutherford ()

No 08/90, CER-ETH Economics working paper series from CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich

Abstract: This paper develops a decomposition algorithm by which a market economy with many households may be solved through the computation of equilibria for a sequence of representative agent economies. The paper examines local and global convergence properties of the sequential recalibration (SR) algorithm. SR is then demonstrated to efficiently solve Auerbach- Kotlikoff OLG models with a large number of heterogeneous households. We approximate equilibria in OLG models by solving a sequence of related Ramsey optimal growth problems. This approach can provide improvements in both efficiency and robustness as compared with simultaneous solution methods.

Keywords: Computable general equilibrium; Overlapping generations; Microsimulation; Sequential recalibration (search for similar items in EconPapers)
JEL-codes: C68 C81 D61 D91 (search for similar items in EconPapers)
Pages: 53 pages
Date: 2008-06
New Economics Papers: this item is included in nep-cmp and nep-dge
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.ethz.ch/content/dam/ethz/special-inter ... -papers/wp_08_90.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not found UA (https://www.ethz.ch/content/dam/ethz/special-interest/mtec/cer-eth/cer-eth-dam/documents/working-papers/wp_08_90.pdf [301 Moved Permanently]--> https://ethz.ch/content/dam/ethz/special-interest/mtec/cer-eth/cer-eth-dam/documents/working-papers/wp_08_90.pdf)

Related works:
Journal Article: Computation of Equilibria in OLG Models with Many Heterogeneous Households (2010) Downloads
Chapter: Computation of Equilibria in OLG Models with Many Heterogeneous Households (2009)
Working Paper: Computation of Equilibria in OLG Models with Many Heterogeneous Households (2007) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eth:wpswif:08-90

Access Statistics for this paper

More papers in CER-ETH Economics working paper series from CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2024-06-12
Handle: RePEc:eth:wpswif:08-90