Near-Rational Equilibria in Heterogeneous-Agent Models: A Verification Method

We thank Santiago Bazdresch (discussant), Jack Favilukis (discussant), Ken Judd, Aubhik Khan, Jonathan Parker, Tony Smith (discussant), Julia Thomas, and seminar participants at City University of Hong Kong, Hong Kong University, INSEAD, MIT, Nanyang Technological University, Ohio State University, UC Berkeley, UCLA, University of Michigan, and at the Duke AP conference, Minnesota Macro-Asset Pricing conference, MIT Capital Markets Workshop, Society for Economic Dynamics Annual Meeting, SITE Stanford, and the Western Finance Association Meeting for comments. We thank Anton Petukhov for excellent research assistance. The views expressed here are ours and not necessarily those of the Federal Reserve Bank of Atlanta, the Federal Reserve System, or the National Bureau of Economic Research.

• June 7, 2022