Introduction

Notebook by Chun Hei Hung [1]

This webpage provides user-friendly instructions on how to solve the models and produce the figures featured in Sections 4 and 5 of Hansen, Khorrami and Tourre (2024). It is divided into the following chapters:

1. Single Capital Model

2. Model Ambiguity

3. Two Capital Model

4. Heterogeneous Agents

5. Elasticities

The code used in this book is taken from the GitHub repository, though some of the code is refactored so that it can be run using Juypter notebooks. The code is written in both Julia and Python: generally we use Python where useful packages exist (e.g. TensorFlow) and Julia when the task requires solving large linear systems (finite differences). This resource is intended as a starting point for users; we recommend using the original code on GitHub if users wish to submit large batches of jobs or want to perform computationally intensive tasks such as solving the two capital model or simulating elasticities.

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[1]

The code used by this notebook was written by Joseph Huang, Haomin Qin and Chun Hei Hung. Thanks to Joseph Huang for his helpful comments.