Skip to content
New issue

Have a question about this project? Sign up for a free GitHub account to open an issue and contact its maintainers and the community.

By clicking “Sign up for GitHub”, you agree to our terms of service and privacy statement. We’ll occasionally send you account related emails.

Already on GitHub? Sign in to your account

Setting up a heterogeneous firm problem #31

Open
jfellmann14 opened this issue Oct 31, 2024 · 0 comments
Open

Setting up a heterogeneous firm problem #31

jfellmann14 opened this issue Oct 31, 2024 · 0 comments

Comments

@jfellmann14
Copy link

Hey!

I'm trying to learn how to use the toolbox (very cool, by the way) and I figured that a good way was to get stuff going on by my own.
I'm trying to run a problem in which the heterogeneity is in firm productivity.
Imagine that you have a problem in which the household block is very simple and standard, but firms are subject to exogenous productivity shocks, as well as an aggregate shock.
I'm thinking of a Krusell-Smith model, but changing the heterogeneity from place.
My question, which I think is very silly, but can't wrap my head around, is: looking at the Krusell-Smith notebook, section 2 defines the computation for the household problem, which I would have to translate for the firm. The thing is that, unlike the HH's problem, the firm chooses its price period by period, so how should go about setting the recursive formulation?

Thanks!

Sign up for free to join this conversation on GitHub. Already have an account? Sign in to comment
Labels
None yet
Projects
None yet
Development

No branches or pull requests

1 participant