Model
Two-stage optimal control models are a useful tool to model stochastic shocks, which have the potential to significantly alter the characteristics of a dynamic system, but cannot be controlled by the decision maker. Applications can be found in a wide range of topics including health and environmental economics.
Model
The aim of this model is to provide a unified framework for studying and mitigating the economic and demographic consequences of increasing inequality. The MIWAG model is a rich life-cycle model that allows to trace out how initial heterogeneity is transmitted into unequal behaviours and outcomes over the lifecycle. It can be used for studying how different policies lead to different dynamics over the life-cycle and how this affects intra-generational inequality. Moreover, this life-cycle model can be implemented in an overlapping generations framework, which also allows studying how inequality evolves across cohorts (inter-generational inequality).