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Overview

This is a project that tries to solve a variant of Jermann Quadrini (2012 AER) without debt and adjustment. I try to solve it in two ways: Adrian's method and projection method. My guess is that projection method should be much faster than Adrian's method. It should solve the model within 5 seconds if given a good initial guess.

Folder and Files

  • /cppcode.cpp: only source code only GCC4.8+ understands.
  • /cuda_helpers.h: all the rest of helper codes go in here.
  • /Model/: contains LyX and PDF that describe the model.
  • /MATLAB/: contains some codes written in MATLAB
  • /Dynare/: contains some codes written in Dynare to check accuracy of linearization

Goal

  • Both methods yields the same solution. Can also use Value Function Iteration to check?
  • Implement linearization solution as a initial guess.
  • Implement Newton's method as generic as possible. Maybe use a class to contain function and derivative, if not too slow.
  • Make everything more reusable/systematic:
    • Use a class to contain model parameters and solution specific parameters.
    • Put helper functions into appropriate header.
    • Figure out a way to separate model "things" from solution "things". Model things like steady states, eureka should be put in a different header file. But the difficulty lies in the unpredictable (even at compile time) number/dimension of objects. For example, different models have different number of endogenous state variables and shocks, then how should we deal with grid point creation and initial guess? Maybe a multidimensional matrix/array can deal with this, but this would be henious to read and Juan wouldn't like it.

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Solving the JQ model without bond and adjustment cost

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