Computation of a large-scale overlapping generations model from Chapter 10 of Heer/Maussner (2009)
'Dynamic General Equilibrium Modeling: Computational Methods and Applications' (2nd edition, 2009)
By Burkhard Heer and and Alfred Maußner --- Python Code for Chapter 10
In this repository, you find the solution to a multi-dimensional value function iteration problem with individual uncertainty. The material is completely new and intended for a new third edition of the book. Its purpose is to solve a multi-dimensional heterogeneous agent overlapping-generations model and the endogenous distribution of assets and cumulated contributions to the pension system.
The model is described in the attached pdf file 'manuscript_Ch9_bidimensional_optimization.pdf'.
PYTHON code: OLG_simple_VI_19dec2020.py: main PYTHON program file
survival_probs.xlsx: Excel input file for the PYTHON program