Thanks for sharing your thoughts! Very much agree that speed only matters *subject to* accuracy.
Reposted from
Fatih Guvenen
THREAD 🧵: A Concerning Trend in the Heterogenous-Agent (HA) Macro Literature
1/n A growing class of computational algorithms makes heavy use of linearization methods to solve HA models. Two key benefits are emphasized: (i) (extreme) speed & (ii) allows many state (aggregate) variables. ++
#econ
1/n A growing class of computational algorithms makes heavy use of linearization methods to solve HA models. Two key benefits are emphasized: (i) (extreme) speed & (ii) allows many state (aggregate) variables. ++
#econ
Comments