Additional Python Examples
Example #1
Creating a discrete approximation to an AR(1) process
The following code imports the quantecon
library and creates a discrete approximation to an AR(1) process
from quantecon import approx_markov
states, matrix = approx_markov(0.9, 0.1, n=4)
print(matrix)
print(states)
In the below figure we are running this code interactively in an Jupyter notebook (See here for more details on setting up Jupyter) and printing the results