Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/26780
Authors: 
Rausch, Sebastian
Rutherford, Thomas F.
Year of Publication: 
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

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