%0 Journal Article %T Solving heterogeneous-agent models with parameterized cross-sectional distributions %+ Centre pour la recherche économique et ses applications (CEPREMAP) %+ Laboratoire de Recherche sur la Consommation (CORELA) %A Algan, Yann %A Allais, Olivier %A den Haan, Wouter %< avec comité de lecture %Z 2441/9labe9r4se65i78968603e5ig %@ 0165-1889 %J Journal of Economic Dynamics and Control %I Elsevier %V 32 %N 3 %P 875 - 908 %8 2008-03 %D 2008 %R 10.1016/j.jedc.2007.03.007 %K Incomplete markets %K Numerical solutions %K Projection methods %K Simulations %Z Humanities and Social Sciences/Economics and FinanceJournal articles %X 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 simulation procedure that not only avoids cross-sectional sampling variation but is 10 (66) times faster than simulating an economy with 10,000 (100,000) agents. Because it avoids cross-sectional sampling variation, it can generate an accurate representation of the whole cross-sectional distribution. Finally, the paper outlines a set of accuracy tests. %G English %L hal-03596370 %U https://sciencespo.hal.science/hal-03596370 %~ SHS %~ ENS-PARIS %~ SCIENCESPO %~ INRA %~ AO-ECONOMIE %~ PSL %~ AGREENIUM %~ INRAE %~ ENS-PSL %~ TEST3-HALCNRS