Using a Bewley-Hugget-Aiyagari model we show how to use the Fokker-Planck equation for likelihood inference in heterogeneous agent (HA) models. We study finite sample properties of maximum estimator (MLE) Monte Carlo experiments using cross-sectional data on wealth and income. Kullback–Leibler divergence investigate identification problems that may affect inference. Unrestricted MLE leads consi...

I introduce a method for simulating aggregate dynamics of heterogeneous-agent models where log permanent income follows random walk. The idea is to simulate the model using counterfactual permanent-income-neutral measure which incorporates effect that shocks have on macroeconomic aggregates. With measure, one does not need keep track permanent-income distribution. both useful analytical charact...

There are many knowledge representation and programming languages, and problem solvers for various applications. The increasing requirements of applications and the changes of computing environment require the cooperation and integration of existing languages and systems, because many applications cannot be necessarily represented by a single language, processed by a single problem solver and a...