Template-Type: ReDIF-Paper 1.0

Author-Name: Junjian Miao
Author-X-Name-First: Junjian
Author-X-Name-Last: Miao
Author-Email: miaoj@bu.edu
Author-Workplace-Name: Department of Economics, Boston University

Author-Name:Manuel Santos
Author-X-Name-First: Manuel 
Author-X-Name-Last: Santos
Author-Email: manuel.santos@asu.edu
Author-Workplace-Name: Department of Economics, W. P. Carey School of Business


Title: Numerical Solution of Dynamic Non-Optimal Economies


Abstract: This paper presents a recursive method for the computation of sequential competitive
equilibria in dynamic models with heterogeneous agents and market frictions.
This computational method builds on a convergent operator defined over an
expanded set of state variables for which a Markovian equilibrium solution is shown
to exist. We apply this method to a stochastic growth economy and two financial
economies.


Length: 28 pages
Creation-Date: 2005-01
Revision-Date: 
Publication-Status:
File-URL:http://www.bu.edu/econ/workingpapers/papers/Jianjun%20Miao/wp2005/aps11.pdf
File-Format: Application/pdf
File-Function: 
Number: WP2005-003
Classification-JEL: 
Keywords: 
Handle: RePEc:bos:wpaper:WP2005-003