Economics at your fingertips  


Paul McNelis ()

No 369, Computing in Economics and Finance 2000 from Society for Computational Economics

Abstract: This paper is a simulation analysis of the stochastic growth model with heterogeneous agents. The environment is one of two agents, with a common technology for production, individual labor endowment shocks, constant relative risk aversion utility functions, and limited borrowing/lending opportunities with no-Ponzi game constraints on government behavior.The analysis makes use of parameterized expectations to solve the model, with a neural network approximation for the expectations of each agent. The genetic algorithm is used to solve for the parameterized expectations coefficients, which satisfy pre-set borrowing/lending limits.This paper analyzes the following questions: is there a higher capital stock when there are less restrictive limits on lending/borrowing between agents, than when there are more restrictive limits? Secondly, are the dynamics considerably different, in the case of identical utility functions but different endowment shocks for the agents, than in the case of different utility functions with identical endowment shocks? Finally, what happens when a government is introduced, with preset expenditures, which can borrow, and tax labor, capital, and consumption of each agent? How do particular tax schemes affect overall capital accumulation, borrowing/lending between agents, and overall welfare?

Date: 2000-07-05
References: Add references at CitEc
Citations: Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
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:

Access Statistics for this paper

More papers in Computing in Economics and Finance 2000 from Society for Computational Economics CEF 2000, Departament d'Economia i Empresa, Universitat Pompeu Fabra, Ramon Trias Fargas, 25,27, 08005, Barcelona, Spain. Contact information at EDIRC.
Bibliographic data for series maintained by Christopher F. Baum ().

Page updated 2021-01-09
Handle: RePEc:sce:scecf0:369