The colloquium offers students a unique opportunity to learn from leading scholars who teach economic modeling, numerical methods, and software engineering. Top researchers in this field will share their innovative approaches throughout the academic year.
Thursday, November 20
Thursday, February 26
Todd Munson discussed computable general equilibrium models, a case study on the international trade implications of carbon policies, and border tax adjustments where the carbon contents for the border tax adjustments are computed endogenous to the model by applying a carbon conservation principle. Attendees learned about the numerical methods for solving these problems and in particular the PATH solver, a sophisticated implementation of a globalized Josephy-Newton algorithm for general nonlinear complementarity problems. Results for the case study were presented using matrices of bilateral carbon flows to analyze the amount of leakage resulting from the policies studied. Todd provided some insights into the sensitivities of the outcomes to uncertain parameters based on the results from a large-scale computational study.
Thursday, March 5
In his talk, Felix Kübler reviewed three recent developments in the computation of equilibria in dynamic stochastic models with heterogeneous agents, including:
- The use of adaptive sparse grids for projection methods
- The choice of the 'right' endogenous state variable
- The use of adaptive sparse grids to compute temporary equilibria in Bewley economies with aggregate risk
Thursday, April 16
Discretizations in high dimensions and multivariate data problems are naturally represented by tensors. In this discussion, University of Chicago research associate and theoretical physicist Victor Zhorin introduced the basic principles that allow a transition from vector- and matrix-based computing to tensor-based computing. Several application areas were discussed, including non-linear information-constrained contract theory problems, industrial organization, and robust economic-climate models. Examples within these areas were analyzed.
Thursday, April 30
In this lecture, Karl Schmedders reviewed projection methods, a general approach for solving functional equations. Subsequently, he discussed an application of projection methods to solving asset-pricing models with recursive preferences. The projection methods outperform common methods like discretization and log-linearization in terms of efficiency and accuracy. In particular, the projection methods detect the presence of strong nonlinear effects in the modern long-run risks models which cannot be captured by the common methods.
Following this review, Schmedders discussed his paper, “Higher-Order Dynamics in Asset-Pricing Models with Recursive Preferences.” This paper presents an analysis of the higher-order dynamics of key financial quantities in asset-pricing models with recursive preferences. The projection method outperforms common methods like discretization and log-linearization in terms of efficiency and accuracy. The algorithm used in this study allows researchers to document the presence of strong nonlinear effects in the modern long-run risks models which cannot be captured by the common methods.
Thursday, May 21
Andrew Shephard will discuss structural empirical approaches to optimal taxation design. The lecture will begin by focusing on the application of static structural labor supply models to taxation design problems.
Shephard will then describe the extension of these models to: i) equilibrium collective marriage market models (where taxes distort labor supply and time allocation decisions, as well as marriage market outcomes, and the within household decision process); ii) dynamic economies (where individuals are subject to preference and productivity shocks, and changes in family structure over the life cycle, and where taxes also distort human capital and savings decisions); and iii) dynamic economies with equilibrium frictional marriage markets. At all stages, emphasis will be placed on numerical and computational methods, and other practical issues.
Thursday, November 12
The practical realities of employing structural models exists more as folklore between experts than in any definitive literature. In this line of research, tacit knowledge is key for successful projects. In a special session, Michael Keane, a seasoned practitioner in the field of computational economics, led an informal discussion on the practical implications of structural economics.
The practical realities of employing structural models exists more as folklore between experts than in any definitive literature. In this line of research, tacit knowledge is key for successful projects. Michael Keane, a seasoned practitioner in the field of computational economics, will lead an informal discussion on the practical implications of structural economics. He will share his knowledge, not found in books or articles, on what works and what doesn't work in the field.