This paper provides conditions under which an algorithm for the computation and simulation of Bewley–Huggett–Aiyagari models, based on state-space discretization, will converge to all true solutions. These conditions are shown to be satisfied in two standard examples: the Aiyagari model and its extension to endogenous labor. Bewley–Huggett– Aiyagari models are general equilibrium models with incomplete markets and idiosyncratic, but no aggregate, shocks. The algorithm itself is based on discretization, while the theory importantly allows for making simulations using the approximate computational solution of the value function problem rather than the true model solution. The numerical results of applying the algorithm to both models are provided and investigated in terms of replication, revealing that the Aiyagari model overestimates the degree of precautionary savings in the high-risk-and-high-risk-aversion case. The results also show that both models almost certainly have a unique general equilibrium. Theoretically, the existence of equilibria was known, but uniqueness remained an open question.

Over the past few decades, both the relative price of housing structures and housing services consumption relative to nondurables increased significantly in the United States. This paper explores demand-side factors such as an increase in idiosyncratic earnings risks and changes in housing institutions as potential explanations for the phenomenon. We build a general equilibrium incomplete markets model of housing and compare two steady states that correspond to the 1967 and 2000 U.S. economies. Our model can generate the simultaneous increase in the relative price of houses and housing services consumption relative to nondurables. We find that the increased earnings risks are crucial in replicating this pattern.

Cet article vise à analyser les effets des conditions d'éligibilité à l'assurance chômage sur le taux de chômage d'équilibre et le bien-être dans un modèle de recherche d'emploi avec accumulation de capital et effort de recherche endogène. Trois instruments de politique économique sont considérés: le montant des indemnisations, la durée de versement des prestations et la période de cotisation au régime d'assurance chômage. Nous mon-trons qu'un allongement de la durée de versement accompagné d'une baisse des allocations améliore le bien-être en utilisant de manière plus efficace la capacité d'auto-assurance des chômeurs éligibles.