Online Video Workshop on VFI Toolkit
vfitoolkit.com/2025-worksho...
Original was taught in-person at LSE in May 2025.

Videos cover toolkit concepts and walk through codes. All slides & codes available to play with. Great intro to VFI Toolkit.

OLG models for policy institutions? The Office of Budget Responsibility (UK) and the Reserve Bank of New Zealand both use VFI Toolkit to build OLG models for policy analysis and advice. VFI Toolkit makes these models much simpler to build, modify, and analyse.

(New) Life-Cycle Model 27
Discretize earnings dynamics 'Model 5' of Guvenen, Karahan, Ozkan & Song (2021), use in exo-labour life-cycle model.

All discretization methods are extensions of Tanaka-Toda method. Lots of gaussian-mixtures :D

surl.li/pjeetp

VFI Toolkit contains discretization methods for: AR(1), AR(1) w/ gaussian-mixture, AR(1) with stochastic volatility, AR(2), VAR(1), life-cycle AR(1), life-cycle AR(1) w/ gaussian-mixture.

Codes harmonize inputs, outputs, notation.
Examples: shorturl.at/A6yX2

(New) Example: Huggett, Ventura & Yaron (2006)
discourse.vfitoolkit.com/t/example-hu...
Does two things:
i) use PSID data in Matlab to estimate life-cycle profiles
ii) calibrate life-cycle model with human capital to reproduce the life-cycle profiles