Robust Markov Perfect Equilibrium Lecture Added

8 Aug 2018

A new lecture extending Markov Perfect Equilibrium and Robustness lectures has been added to the Python side here. The lecture was co-authored by Doncheng Zou. The lecture produces plots that compare previous results to the model with robust decision rules; the new model features a higher price path and lower output path. Additionally, the lecture considers equilibrium effects when firms have heterogenous beliefs about output and price.

Published by: Natasha Watkins

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