Skip to content

[lqramsey] Fix calculation of H #288

New issue

Have a question about this project? Sign up for a free GitHub account to open an issue and contact its maintainers and the community.

Sign up for GitHub

By clicking “Sign up for GitHub”, you agree to our terms of service and privacy statement. We’ll occasionally send you account related emails.

Already on GitHub? Sign in to your account

Merged
merged 3 commits into from
Oct 30, 2025
Merged

[lqramsey] Fix calculation of H #288

Changes from 2 commits
Commits
Show all changes
3 commits
Select commit Hold shift + click to select a range
4fbfa40
Fix calculation of H in lqramsey.md
sudayuga Oct 27, 2025
0b09889
Fix variable in risk-free rate and summation notation
sudayuga Oct 27, 2025
d3845d4
Merge branch 'main' into lqramsey
HumphreyYang Oct 30, 2025
File filter

Filter by extension

Filter by extension
Conversations
Failed to load comments.
Loading
Jump to
Jump to file
Failed to load files.
Loading
Diff view
Diff view
6 changes: 3 additions & 3 deletions lectures/lqramsey.md
View file
Open in desktop
Original file line number Diff line number Diff line change
Expand Up @@ -510,7 +510,7 @@ Define
```{math}
:label: lq_rfr

R^{-1}_{t} := \mathbb E_t \beta^j p^t_{t+1}
R^{-1}_{t} := \mathbb E_t \beta p^t_{t+1}
```

$R_{t}$ is the gross $1$-period risk-free rate for loans
Expand All @@ -527,7 +527,7 @@ $$
and the cumulation of $\pi_t$

$$
\Pi_t := \sum_{s=0}^t \pi_t
\Pi_t := \sum_{s=0}^t \pi_s
$$

The term $\pi_{t+1}$ is the difference between two quantities:
Expand Down Expand Up @@ -693,7 +693,7 @@ def compute_paths(T, econ):
ns = P.shape[0]
F = scipy.linalg.inv(eye(ns) - β * P)
a0 = 0.5 * (F @ (x_vals.T @ Sm.T)**2)[0]
H = ((Sb - Sd + Sg) @ x_vals) * ((Sg - Ss) @ x_vals)
H = ((Sb - Sd + Sg) @ x_vals) * ((Sg + Ss) @ x_vals)
b0 = 0.5 * (F @ H.T)[0]
a0, b0 = float(a0[0]), float(b0[0])
else:
Expand Down
Loading