This repository contains MATLAB code for solving a continuous time incomplete markets model under different equilibrium concepts using the Achdou et al. (2022) method. The model can be solved in:
- Partial equilibrium
- General equilibrium Aiyagari-style with capital
- General equilibrium Huggett-style with bonds
The code builds heavily on the Achdou et al. (2022) codes available on Benjamin Moll's website. This repository serves as a clean set of codes for my personal use for building on in future projects, and is provided as-is in case it is useful. Of minor interest is the procedure for building the sparse A matrix, which is scales well to larger problems.
Matlab/: Model code and calibration routines.Paper/: LaTeX source and compiled PDF describing the model.
- Open
Matlab/main1_cali.m. - Choose the equilibrium mode using the provided switch.
- Run the script to solve the model and generate output.
A detailed description of the model and solution methods is available in the model PDF.