Dear all,
I’m doing hometast on Macroeconomics within the lecture notes of Eric Sims on RBC model. But now I have to do it with heterogenous agents.
I’m confused because there is misunderstanding in model with heterogenuos agents.
Below my equations in pdf file. Could you help me what is the problem here?
Thank you very much in advance!
RBC HA June 14:19.pdf (193.2 KB)
You are not posing any question. What are we supposed to do with the document?
I’m sorry. The question is about budget constraint for second household. Is it true?
How are we supposed to know that? You are the model builder! You only posted a PDF and did not give any description of the model setup except for those equations.
Dear jpfeifer,
There are two agents, one lening to another. Household 1 (saving hh) has bonds, but he does not work. He maximize only consumption. Household 2 (lending) has debt (D) from saving hh and he works (N), gets wages (wN). Saving hh owns the firm.
So, my questions was about budget constraint for lending hh. Is it true as I have written in model?
Do you have the pdf documents of the lecture notes?