20/n Famously, the 2010 JEDC special issue on post Krusell-Smith models included one method that took less than 1 second to obtain a solution compared more 7 to 300 minute for other solutions. But it was so inaccurate that it looked nothing like the true solution (Den Haan (JEDC, 2010))
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I have no horse in this race. I am posting this only because I am concerned. I am also hoping to be persuaded by my colleagues who work on these methods:
Show us how these solutions compared to K-S solution, or even better, to a full Recursive GE solution -- for large shocks.
For the one interested, @benmoll.bsky.social will present @igier @bocconi on Tuesday at 4.30pm
My first Econ research post here. Curious to see how active this platform is.
#economics #linearization