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Link to Will Du's paper is missing (I don't know what it is), and link to liquid-illiquid asset models in HARK is a rickroll. Unless I'm drawing a blank, this doesn't exist.
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mnwhite committed Oct 15, 2024
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Expand Up @@ -4,7 +4,7 @@ author: "Christopher D. Carroll"
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# Econ-ARK for Central Banks
Expand All @@ -17,7 +17,7 @@ Christopher Carroll

Johns Hopkins University

[Powered By Econ-ARK](link to button)
Powered By [Econ-ARK](http://www.econ-ark.org)


## Microfoundations in a Nutshell (1/2) {.smaller}
Expand All @@ -38,29 +38,29 @@ Johns Hopkins University

### Early 1990s: Numerical computation of SS dist'n of wealth

* Life Cycle/OLG:
* Life Cycle / OLG:
+ Zeldes (1989); Hubbard, Skinner, and Zeldes (1994, 1995);
+ Huggett (1996); Carroll (1997)
* Infinite Horizon
+ Deaton (1991); Carroll (1992); Aiyagari (1994)
* Aggregate _dynamics_? Hopeless:
* Aggregate **dynamics**? Hopeless:
+ requires predicting evolution of entire **distribution**


## Dynamics {.smaller}

### Krusell-Smith (1998): <!-- somebody add link to our KS replication -->
### [Krusell-Smith (1998)](https://econ-ark.org/materials/krusellsmith/):

* _mean_ of distribution $\bar{k}$ is good enough!
* still excruciatingly slow

### Reiter (2010):

* SS Micro and Dyn Macro _can be solved independently_
+ _Why_? Idiosyncratic shocks 100x larger than agg
* SS Micro and Dyn Macro *can be solved independently*
+ *Why*? Idiosyncratic shocks 100x larger than agg
+ So agg shocks cause 'small' perturbation of dstn
* $\Rightarrow$ Reiter Singularity: 2014-2018
+ Culmination: "Sequence Space Jacobian" Toolkit: <!-- link -->
+ Culmination: ["Sequence Space Jacobian" Toolkit](https://github.com/shade-econ/sequence-jacobian):
+ Bring us your micro SS and Jacobians wrt PF aggregate shocks
- ...We'll give you the dynamic macro

Expand All @@ -69,17 +69,17 @@ Johns Hopkins University

### Rich Set of Tools for SS Micro ...

<!-- Somebody please make links to relevant docs or REMARKs or DemARKs -->
* [Consumption/Saving](link me)
* [Portfolio Choice](link me)
* [Liquid and Illiquid Assets](link me)
* [Discrete-Continuous Problems](link me): [DC-EGM tool](link me)
* [Labor Supply](link me): [Keane and Imai](link me)
* [Medical Expense Risk](link me)
* [Life Cycle Modeling](link me): [solutions](link me) and [datasets](All the SCFs, with tools)
* [Consumption/Saving](https://docs.econ-ark.org/Documentation/reference/ConsumptionSaving/ConsIndShockModel.html)
* [Portfolio Choice](https://docs.econ-ark.org/Documentation/reference/ConsumptionSaving/ConsPortfolioModel.html)
* [Liquid and Illiquid Assets](https://www.youtube.com/watch?v=dQw4w9WgXcQ)
* [Discrete-Continuous Problems](https://econ-ark.org/materials/dcegm-upper-envelope/): [DC-EGM tool](https://docs.econ-ark.org/Documentation/reference/tools/dcegm.html)
* [Labor Supply](https://docs.econ-ark.org/Documentation/reference/ConsumptionSaving/ConsLaborModel.html): [Keane and Imai](https://docs.econ-ark.org/Documentation/reference/tools/incomeprocess.html)
* [Medical Expense Risk](https://docs.econ-ark.org/Documentation/reference/ConsumptionSaving/ConsMedModel.html)
* Life Cycle Modeling: [solutions](https://docs.econ-ark.org/examples/LifecycleModel/Cycles_tutorial.html) and [datasets](https://docs.econ-ark.org/Documentation/reference/tools/incomeprocess.html)
* Sophisticated Liquidity Constraints
+ [Higher rate for borrowing vs saving](link me)
+ [withdrawal penalties for retirement saving](Mateo VG JMP)
+ [Higher rate for borrowing vs saving](https://docs.econ-ark.org/Documentation/reference/ConsumptionSaving/ConsIndShockModel.html#HARK.ConsumptionSaving.ConsIndShockModel.KinkedRconsumerType)
+ [Withdrawal penalties for retirement saving](https://mateovg.com/files/pdf/JMP_VelasquezGiraldoM.pdf)
* Etc etc


## Where Does Econ-ARK Fit? (2/2) {.smaller}
Expand All @@ -92,22 +92,24 @@ Johns Hopkins University
1. Feed results to SSJ toolkit

* Documentation Notebooks
+ (links to all three of our SSJ documentation notebooks)
+ [HARK and the Sequence Space Jacobian Method](https://docs.econ-ark.org/examples/ConsNewKeynesianModel/SSJ_example.html)
+ Computing Heterogeneous Agent Jacobians in HARK](https://docs.econ-ark.org/examples/ConsNewKeynesianModel/Jacobian_Example.html)
+ [Solving Krusell-Smith Model with HARK and SSJ](https://docs.econ-ark.org/examples/ConsNewKeynesianModel/KS-HARK-presentation.html)

* Papers:
+ Will Du: [HANK with Scarring](link me)
+ Bence Barosczy and Mateo Velasquez-Giraldo: "HANK Comes of Age"
+ Bence Barosczy and Mateo Velasquez-Giraldo: [HANK Comes of Age](https://www.federalreserve.gov/econres/feds/hank-comes-of-age.htm)
+ In progress: [Welfare and Spending Effects of Consumption Stimulus Policies](https://llorracc.github.io/HAFiscal)


## But Wait, There's More: Indirect Inference

### Life Cycle Model (Gourinchas-Parker; Cagetti)

* [SolvingMicroDSOPs-Estimation](link me)
* [SolvingMicroDSOPs]: (https://github.com/econ-ark/SolvingMicroDSOPs)

* With Bequests? (DeNardi)
- [TRP Model Notebook](link me)
- [TRP Model Notebook](https://github.com/econ-ark/EstimatingMicroDSOPs/blob/main/src/notebooks/Model_Comparisons.ipynb)


## But Wait, There's More: REMARKS {.smaller}
Expand Down Expand Up @@ -157,8 +159,7 @@ Johns Hopkins University

### Tower of Babel problem

1. Lack of transparency
+ What exactly **is** your model?
1. Lack of transparency: What exactly **is** your model?
+ Lots of buried assumptions: gridpoints, boundaries, dstns
2. Lack of replicability
+ Some notorious stories (only runs on Win 8.1 w/ Matlab 8.7.6.5)
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