TY  - JOUR
AU  - Evans,Martin D. D.
AU  - Hnatkovska,Viktoria
TI  - Solving General Equilibrium Models with Incomplete Markets and Many Assets
JF  - National Bureau of Economic Research Technical Working Paper Series
VL  - No. 318
PY  - 2005
Y2  - October 2005
UR  - http://www.nber.org/papers/t0318
L1  - http://www.nber.org/papers/t0318.pdf
N1  - Author contact info:
Martin Evans
Department of Economics
Georgetown University
Washington, DC  20057
Tel: 202-687-1570
E-Mail: evansm1@georgetown.edu

Viktoria Hnatkovska
Department of Economics
University of British Columbia
Vancouver, BC V6T 1Z1
E-Mail: hnatkovs@interchange.ubc.ca
AB  - This paper presents a new numerical method for solving general equilibrium models with many assets. The method can be applied to models where there are heterogeneous agents, time-varying investment opportunity sets, and incomplete markets. It also can be used to study models where the equilibrium dynamics are non-stationary. We illustrate how the method is used by solving a one-- and two-sector versions of a two--country general equilibrium model with production. We check the accuracy of our method by comparing the numerical solution to the one-sector model against its known analytic properties. We then apply the method to the two-sector model where no analytic solution is available.
ER  -