Thank you for offering the summer lecture series at no cost. Appreciate it very much. Please also consider the lectures on numerical computations. Most students are interested in the examples/possibility of numerical computations of theoretical models using open-source languages, particularly Julia. Such data-based applications and evidence would only convince the students about the practical value of these sessions. One notable challenge of these models is the limited availability of resources for demonstrating numerical evidence using actual data. Filling this gap is crucial for substantiating these economic theories to students and convincing them to learn them in today's ML algorithm-based world, where data speaks along with the models. I appreciate your consideration of this suggestion.
At 1:12:38, it seems that one can apply the HH FOC with respect to theta to reach the last line. If the thetas sum to one (not sure if they do), I think there would be some extra terms in the next line. Thanks for the video!
I have a question. Why does the model only has one state variable eta? In my understanding, the state variable of the expert problem is n^e, and the state variable of the household problem is n^h. Why is eta sufficient to pin down both n^e and n^h?
Thank you for offering the summer lecture series at no cost. Appreciate it very much. Please also consider the lectures on numerical computations. Most students are interested in the examples/possibility of numerical computations of theoretical models using open-source languages, particularly Julia. Such data-based applications and evidence would only convince the students about the practical value of these sessions. One notable challenge of these models is the limited availability of resources for demonstrating numerical evidence using actual data. Filling this gap is crucial for substantiating these economic theories to students and convincing them to learn them in today's ML algorithm-based world, where data speaks along with the models. I appreciate your consideration of this suggestion.
Thank you for this
At 1:12:38, it seems that one can apply the HH FOC with respect to theta to reach the last line. If the thetas sum to one (not sure if they do), I think there would be some extra terms in the next line. Thanks for the video!
I have a question. Why does the model only has one state variable eta? In my understanding, the state variable of the expert problem is n^e, and the state variable of the household problem is n^h. Why is eta sufficient to pin down both n^e and n^h?
If eta is the net worth share of experts, then 1-eta is the net worth share of households. You have both, from just one state variable.