File size: 489 Bytes
ed7d493 | 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 | period_length = 0.25;
P = 1 - exp(-.04*period_length); % disaster probability
B = -log(1 - .32); % disaster size
meanB = B;
G = 0.025*period_length; % drift of log output
RHO = 0.04*period_length; % time preference rate
NU = 0.02*period_length; % replacement rate
MU = 0.05; % popoulation share of agent 1
ALPHA = 1/3; % capital share in output
TAU = 0; % bond duration - short-term bonds
GAMMA1 = 1.000001; % start with unit risk aversion
GAMMA2 = GAMMA1;
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