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Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI), Essen >
Ruhr Economic Papers, RWI >
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http://hdl.handle.net/10419/26780
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| Title: | | Computation of equilibria in OLG models with many heterogeneous households  |
| Authors: | | Rausch, Sebastian Rutherford, Thomas F. |
| Issue Date: | | 2007 |
| Series/Report no.: | | Ruhr economic papers 15 |
| 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. |
| Subjects: | | Computable general equilibrium overlapping generations microsimulation sequential recalibration |
| JEL: | | C68 C81 D61 D91 |
| ISBN: | | 978-3-86788-009-1 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Publikationen von Forscherinnen und Forschern des RWI Ruhr Economic Papers, RWI
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