This paper reviews methods for the estimation of dynamic discrete choice structural models
and discusses related econometric issues. We consider single-agent models, competitive …

The present paper reviews recent research aimed at constructing a theoretical model of the
macroeconomy with five key elements:(i) it is based on rational decision making by …

This paper provides a critical survey of the large literature on the life cycle model of
consumption, both from an empirical and a theoretical point of view. It discusses several …

Accounting for the US Earnings and Wealth Inequality | Journal of Political Economy: Vol
111, No 4 Skip to main content University of Chicago Press Journals logo University of …

We postulate a continuous‐time heterogeneous agent model with a financial sector and
households to study the nonlinear linkages between aggregate and financial variables. In …

Macroeconomics at the intermediate and graduate levels rests on three workhorses: the
Solow-Swan model, the overlapping generations (OLG) model, and the Ramsey model. The …

Abstract We analyse a Bewley-Huggett-Aiyagari incomplete-markets model with labour-
market frictions. Consumers are subject to idiosyncratic employment shocks against which …

I construct an economy with heterogeneous agents that mimics the time‐series behavior of
the earnings distribution in the United States from 1963 to 2003. Agents face aggregate and …

We show how to enhance the performance of a Smolyak method for solving dynamic
economic models. First, we propose a more efficient implementation of the Smolyak method …

This article describes the approach to computing the version of the stochastic growth model
with idiosyncratic and aggregate risk that relies on collapsing the aggregate state space …