Skip to content Skip to navigation

Session 4: Computational Methods for Dynamic Economies and Games

August 1-3, 2016

Organized by:

  • Kenneth Judd, Hoover Institution, Stanford University
  • Felix Kubler, University of Zurich
  • Thomas Sargent, New York University
  • Karl Schmedders, University of Zurich
  • Christopher Sleet, Carnegie Mellon University
  • Sevin Yeltekin, Carnegie Mellon University

Pre-registration is mandatory for all non-presenter attendees. Session begins Monday, 8/1, around 9am, and ends Wednesday, 8/3, 3:15pm, and will be held at Landau Economics Bldg, Lucas Conference Room A, 579 Serra Mall.

Dynamic economies with heterogeneous agents are naturally high dimensional objects. Their quantitative analysis requires efficient and accurate optimization and approximation procedures. This session will include papers that develop numerical methods for dynamic heterogeneous agent competitive models with many agents and strategic models with finite agents. The primary focus will be on numerical solutions to contracting problems in discrete and continuous time, mean field games, dynamic recursive games and dynamic general equilibrium models. We seek applications to problems in industrial organization (e.g. firm dynamics and size distribution), finance (e.g. information percolation), and macroeconomics (e.g. income and wealth distribution, knowledge diffusion and growth, optimal social insurance).

In this Session

Aug 1 | 9:30 am to 10:45 am

On the Solution and Application of Rational Expectations Models with Function-Valued States

Presented by: David Childers, Yale University
Aug 1 | 11:00 am to 12:15 pm

Controlling a Distribution of Heterogeneous Agents

Presented by: Galo Nuño, Banco de España
Co-Author(s): Benjamin Moll, Princeton University
Aug 1 | 1:00 pm to 2:15 pm

A Toolbox for Solving and Estimating Heterogeneous Agent Macro Models

Presented by: Thomas Winberry, University of Chicago
Aug 1 | 2:30 pm to 3:45 pm

Approximate Aggregation in the Neoclassical Growth Model with Idiosyncratic Shocks

Presented by: Todd Walker, Indiana University
Co-Author(s): Nets Katz, California Institute of Technology; Karsten Chipeniuk, Indiana University
Aug 2 | 9:00 am to 10:15 am

The Macro-dynamics of Sorting between Workers and Firms

Presented by: Jeremy Lise, University College London
Co-Author(s): Jean-Marc Robin, Sciences Po, Paris
Aug 2 | 10:30 am to 11:45 am

Ranking Firms Using Revealed Preference

Presented by: Isaac Sorkin, Stanford University
Aug 2 | 12:30 pm to 1:45 pm

What Accounts for the Racial Gap in Time Allocation and Intergenerational Transmission of Human Capital?

Presented by: George-Levi Gayle, Washington University in St. Louis
Co-Author(s): Limor Golan, Washington University in St. Louis; Mehmet A. Soytas, Ozyegin University
Aug 2 | 2:00 pm to 3:15 pm

The Effects of Moral Hazard on Wage Inequality in a Frictional Labor Market

Presented by: Susanne Forstner, RWTH Aachen University
Co-Author(s): Árpád Ábrahám, European University Institute; Fernando Alvarez-Parra, CAF
Aug 2 | 3:30 pm to 4:45 pm

Asset Pricing with Heterogeneous Agents and Long-Run Risk

Presented by: Ole Wilms, University of Zurich
Co-Author(s): Karl Schmedders & Walt Pohl, University of Zurich
Aug 3 | 9:00 am to 10:15 am

Paternalism vs Redistribution: Designing Retirement Savings Policies with Behavioral Agents

Presented by: Christian Moser, Princeton University
Co-Author(s): Pedro Olea de Souza e Silva, Princeton University
Aug 3 | 10:30 am to 11:45 am

Discrete Games in Endogenous Networks: Theory and Policy

Presented by: Anton Badev, Federal Reserve Board
Aug 3 | 12:30 pm to 1:45 pm

Dynamic Principal Agent Problems

Presented by: Philipp Renner, Stanford University
Co-Author(s): Karl Schmedders, University of Zurich
Aug 3 | 2:00 pm to 3:15 pm

An Application of Large-Scale Dynamic Programming to Economics: Optimal Dynamic Taxation

Presented by: Ken Judd, Hoover Institution, Stanford University
Co-Author(s): Yongyang Cai, Stanford University; Philipp Renner, Stanford University; Simon Scheidegger, University of Zurich; Sevin Yeltekin, Carnegie Mellon University