Solves and Simulates the Huggett JEDC (1993) Economy

This provides a set of code that solves and simulates the Huggett economy. I really like this model. It is a nice instance where the primitives + dynamic behavior induce a demand and supply curve for assets. The interst rate is found so that demand and supply are equall. It closely follows the presentation and numerical results discussed in Recursive Macroeconomic Theory.

Two folders contain code to compute the Huggett Economy

• Julia version with several approaches to solving the model using non-linear solvers to solve the value function, stationary distribution, and an equillibrium.

• Matlab version.