Algan, Yann; Allais, Olivier; Haan, Wouter J. Den - In: Journal of Economic Dynamics and Control 32 (2008) 3, pp. 875-908
A new algorithm is developed to solve models with heterogeneous agents and aggregate uncertainty. Projection methods are the main building blocks of the algorithm and - in contrast to the most popular solution procedure - simulations only play a very minor role. The paper also develops a new...