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