Consumption model guide - ganong-noel/lab_manual GitHub Wiki

Resources on consumption-saving models that helped former RPs get up to speed:

  1. This slide deck on a two period model was a very helpful quick primer before reading the longer papers.
  2. This paper was the most helpful thing I read for getting a sense of the underlying economics.
  3. These model notes give a very clear explanation of our Two Asset Model in RDFO. Whether or not you are working on that project, they are a useful read for the intuition.
  4. These two Kaplan and Violante papers (2014, 2022) provide useful background on modern consumption models and are particularly relevant to our work on the RDFO model.

Resources on dynamic stochastic optimization:

  • solvingmicrodsops.pdf. This is Chris Carroll's explanation of the general problem and his solution method (endogenous grid points).
  • problemSet3_2013.pdf, PS3_Noel_FINAL.PDF. See question 2 in this problem set and my writeup. This was from Alp Simsek's macro field course at MIT. I am going to save what I think is the matlab code with the solution, which might be helpful in strategic_drive/lit/numerical methods/.
  • Alp (and Laibson, see below) cites Stokey and Lucas. Alp specifically cites Chapter 4. I saved a pdf of that textbook to strategic_drive/lit/numerical methods/, and you might also find it at the library.
  • David Laibson notes from first-year PhD macro. If you look at slide 13 of lecture 1, he cites three methods for solving these dynamic programing problems. I think what they are doing is related to option (3), i.e. iterating numerically, which is discussed a bit more in Lecture 2. 2010c Lecture 01 Fall 2015.pdf 2010c Lecture 02 Fall 2015.pdf