Federal Reserve Bank of Cleveland: 'Equilibrium Multiplicity in Aiyagari and Krusell-Smith'
July 16, 2024
July 16, 2024
CLEVELAND, Ohio, July 16 (TNSres) -- The Federal Reserve Bank of Cleveland issued the following white paper (No. 24-13) in June 2024 by Kieran James Walsh and Eric R. Young entitled "Equilibrium Multiplicity in Aiyagari and Krusell-Smith."
Here are excerpts:
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Repeatedly solving the Aiyagari (1994) model with random parameters, we construct hundreds of examples with multiple stationary equilibria. We never find multiplicity with risk aversion . . .
Here are excerpts:
* * *
Repeatedly solving the Aiyagari (1994) model with random parameters, we construct hundreds of examples with multiple stationary equilibria. We never find multiplicity with risk aversion . . .