387fproj - Economics 387. Banking and Financial...

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Economics 387. Banking and Financial Intermediation. Spring 2002. Department of Economics, University of Texas Instructor: Dean Corbae, BRB 3.118, (o) 512-475-8530 email: corbae@eco.utexas.edu, web: www.eco.utexas.edu/~corbae Final Project - Due 5pm, 5/8/02-Computing a Dynamic Private Information Economy Your nal assignment, should you choose this option rather than a paper, is to compute Random Matching and Private Information", Journal of Money, Credit and Banking , V30, No3.,Part2, p.551-569 which we discussed in class. As HW#8 had you do, the basic steps are to apply the method of successive approximations to obtain the value function and decision rules and then use the decision rules along with the transition function for idiosyncratic income shocks to obtain the invariant distribution of promised utility via the method of successive approximations. Unlike HW#8, where we simply considered a ne grid over asset holdings and evaluated the utility associated with a given discrete choice of
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This note was uploaded on 08/06/2008 for the course ECON 387 taught by Professor Corbae during the Spring '07 term at University of Texas at Austin.

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