Dear Dynare community,
I am currently working on macroeconomic research evaluating the effects of monetary policy within HANK frameworks. While exploring the new heterogeneity features in Dynare, I have been studying the official example file hank_two_assets.mod.
I understand this script was developed by the Dynare Team to showcase the heterogeneity_solve and heterogeneity_simulate commands using a Sequence-Space Jacobian approach. However, I would like to know if the specific economic structure and calibration of this two-asset model (specifically the functional forms for the liquid/illiquid asset adjustment costs) are based on a particular replication paper (e.g., Kaplan, Moll, and Violante, 2018) or a companion working paper by the Dynare developers.
Knowing the exact theoretical baseline would be incredibly helpful for properly citing the underlying structure in my current research.
Thank you in advance for your time and guidance!