kirvlasenkov / stochastic-ramsey

How much of its income should a nation save?

stochastic-ramsey

Table of contents

• Purpose
• Requirements
• Usage
• Code structure

Purpose

Task was to solve the stochastic infinite-horizon Ramsey growth model via value function iterations algo on a discrete grid of states.

Requirements

pip3 install -r requirements.txt

Usage

Just run main.py and have fun 😎

Code structure

markov_ar.py

Approximates AR(1)-Process by Markov chain

bilinear intepolation

Bilinear intepolation, used for the computation of the policy function

policy.py

Calculates the policy function via bilinear interpolation, used for the calculation of the Euler residuals

euler.py

Computes Euler residuals

solver.py

Computes the policy function for a Stochastic Infinite-Horizon Ramsey Model

utility.py

Contains the one-period utility function of the model

consts.py

File with global constants