Referring to #1021 and #326
Parameters for a time-varying income process are entered like this:
# Parameters that specify the income distribution over the lifecycle
"PermShkStd" : [0.1,0.2,0.1,0.2,0.1,0.2,0.1,0,0,0],
"PermShkCount" : 7, # Number of points in discrete approximation to permanent income shocks
"TranShkStd" : [0.3,0.2,0.1,0.3,0.2,0.1,0.3,0,0,0],
"TranShkCount" : 7, # Number of points in discrete approximation to transitory income shocks
But against what one might expect, the 0th element of the list is interpreted as the shock that occurs at the 0th as well as 1th periods. The 1th element of the list corresponds to the 2th shock, etc.
This not a natural way to define a model and is not very well documented; it is done this way because of some logic imported from earlier solution code. That code should be ammended.
Referring to #1021 and #326
Parameters for a time-varying income process are entered like this:
But against what one might expect, the 0th element of the list is interpreted as the shock that occurs at the 0th as well as 1th periods. The 1th element of the list corresponds to the 2th shock, etc.
This not a natural way to define a model and is not very well documented; it is done this way because of some logic imported from earlier solution code. That code should be ammended.