Yuriy Gorodnichenko, Lilia Maliar, Serguei Maliar and Christopher Naubert (2022). "U.S. versus Europe: How Differential COVID-19 Policies Affect Inequality", manuscript.
Keith Kuester, Lilia Maliar, Serguei Maliar and Josef Schroth (2022). "Macroprudential Policy and Precautionary Savings", manuscript.
Summary. This chapter provides an introduction to perturbation, projection, value function iteration, Smolyak, endogeneous grid and envelope condition methods, parallel computation, supercomputers, GPUs and many other methods and shows how to use these methods to solve dynamic stochastic economic models with hundreds of state variables. Check our MATLAB codes.