Demonstration of the Reiter method for solving models with heterogeneous agents and aggregate shocks in general equilibrium. Solves a simple model of firm investment with persistent aggregate and idiosyncratic productivity shocks. UPDATE: Consider looking at https://github.com/jeromematthewcelestine/hadsge for Reiter-method code instead.
This PR tidies the files and adds documentation. Main changes are:
MAIN.m
setup.m
Have a read through and see if it all makes sense to you. If there's anything you don't know or don't understand, let me know.
Once you're happy with everything and have accepted the pull request, we can talk about the next steps.