Simulating Computable Overlapping Generations Models with TROLL
(2004) Computational Economics — Vol. 23, n° 1, p. 1-19 (2004)
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- Abstract
- In this paper, we examine the performance of the TROLL stacked-time algorithmin the simulation of large scale overlapping generations (OLG) models. At eachperiod of time, the number of equations is proportional to the individuallength of lifetime. The model size and the data requirements may thus be verylarge. Given the repetitive structure of the equations, we show how TROLLspecific macrocommands can be used to explode a generic version (in which thelifetime is parameterized) into a complete model. A similar technique appliesto explode the initial dataset on the whole simulation horizon. The stabilityproperties of the model are derived and the stacked-time algorithmperformances are checked for a large scale model with endogenous labour supplyand uncertain lifetime. It turns out that TROLL performances are veryattractive even for a system of 300000 simultaneous equations.
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Docquier, F., & Liégeois, P. (2004). Simulating Computable Overlapping Generations Models with TROLL. Computational Economics, 23(1), 1-19. https://doi.org/10.1023/B:CSEM.0000007093.33504.9a (Original work published 2004)