@techreport{Rausch2007Computation,
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.},
address = {Essen},
author = {Sebastian Rausch and Thomas F. Rutherford},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
isbn = {978-3-86788-009-1},
keywords = {C68; C81; D61; D91; 330; Computable general equilibrium; overlapping generations; microsimulation; sequential recalibration; CGE-Modelling; Allgemeines Gleichgewicht; Dekompositionsverfahren; Overlapping Generations; Theorie},
language = {eng},
number = {15},
publisher = {RWI},
title = {Computation of equilibria in OLG models with many heterogeneous households},
type = {Ruhr economic papers},
url = {http://hdl.handle.net/10419/26780},
year = {2007}
}
