To illustrate how DEQNs can be applied to solve economic models, we provide an example in python, which solves the model presented in Appendix H of Azinovic, Gaegauf, & Scheidegger (2021). The presented model is taken from Krueger and Kubler (2004) and is based on Huffman (1987). We chose this model as an illustrative example for two reasons: first, it is closely related to the models we solve in the paper and second, it has an analytical solution, so the accuracy of the solution method can easily be verified.
$ pip install tensorflow==1.13.1Launch with:
$ cd <PATH to the repository>/DeepEquilibriumNets/code/python-scripts/analytic
$ python Analytic_tf1.py