Patching utility functions
Some utility functions have singularity u(c) --> -infty as c-->0. CRRA utility, which is a good example, is one of the most popular specifications that…
Read more →Understanding Sequence Space Jacobian (SSJ)
This post progressively introduces the idea and applications of sequence space Jacobian (SSJ) in model perturbation methods, specifically how to efficiently compute perfect foresight transition…
Read more →Collocation with the presence of endogeneous Markovian risk
Tianhao Zhao The collocation method is widely used in macroeconomic modeling to approximate value functions (or policy functions) through interpolation techniques. This approach offers two…
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