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Saturday, January 29, 2011

New Code Posted...

So I have finally worked out the Python code for generating marginal densities of the evolution of output when following the optimal savings policy for the growth model detailed in Chapter 6 of Economic Dynamics.  The new graphics for the model from the textbook are below and the code has been posted to my repository (fvi_v2.py).

Simulated Trajectories: Not all that interesting...

Simulated Marginal Densities of Log Output: More interesting...notice the convergence.  This is Figure 6.12 from Chapter 6.

Output when following the Optimal Savings Policy: Same plot as before, but know I have added axes labels.  This is Figure 6.11 from Chapter 6.

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