Lecture 8-9 Flashcards
1
Q
Give the equilibrium definition of the Huggett model of Heterogeneous Agents.
A
2
Q
Give the equilibrium definition of the Aiyagari model of Heterogeneous Agents.
A
3
Q
What is the differnce between the Huggett and the Bewley Models?
A
The Huggett Model uses private IOU’s in zero net supply while the Bewley Model uses money or bonds in positive net supply for the consumer.
4
Q
What is the envelope theorem
A
5
Q
A
6
Q
A
