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_notebooks/BCG_complete_mkts.ipynb

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"cells": [
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{
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"cell_type": "markdown",
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"id": "9adb07cf",
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"metadata": {},
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"\n",
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},
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{
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"cell_type": "markdown",
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"id": "2aa1fa11",
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"metadata": {},
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"source": [
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"# Irrelevance of Capital Structures with Complete Markets\n",
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{
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"cell_type": "code",
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"execution_count": null,
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"id": "13060122",
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"metadata": {
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"hide-output": false
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},
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{
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"cell_type": "markdown",
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"id": "1053fa40",
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"metadata": {},
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"source": [
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"## Introduction\n",
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{
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"cell_type": "markdown",
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"id": "dac299dc",
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"metadata": {},
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"source": [
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"### Setup\n",
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},
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{
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"cell_type": "markdown",
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"id": "00b5ec3a",
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"metadata": {},
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"### Endowments\n",
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"cell_type": "markdown",
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"id": "e169fd4a",
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"metadata": {},
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"### Technology:\n",
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{
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"cell_type": "markdown",
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"### Preferences:\n",
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{
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"### Parameterizations\n",
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},
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"cell_type": "markdown",
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"id": "d9d12401",
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"metadata": {},
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"### Pareto criterion and planning problem\n",
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},
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"cell_type": "markdown",
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"### Helpful observations and bookkeeping\n",
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},
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"cell_type": "markdown",
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"id": "9f703b33",
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"metadata": {},
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"#### Remarks\n",
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"cell_type": "markdown",
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"id": "b4d38ff7",
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"source": [
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"## Competitive equilibrium\n",
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"cell_type": "markdown",
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"### Measures of agents and firms\n",
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},
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"cell_type": "markdown",
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"metadata": {},
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"source": [
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"#### Ownership\n",
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},
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"cell_type": "markdown",
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"#### Asset markets\n",
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"cell_type": "markdown",
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"### Objects appearing in a competitive equilibrium\n",
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"### A representative firm’s problem\n",
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"### A consumer’s problem\n",
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"### Computing competitive equilibrium prices and quantities\n",
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},
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"### Modigliani-Miller theorem\n",
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},
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"## Code\n",
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{
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"cell_type": "code",
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"hide-output": false
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{
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"cell_type": "code",
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"hide-output": false
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},
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"cell_type": "markdown",
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"### Examples\n",
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},
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"cell_type": "markdown",
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"id": "b716b8e8",
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"metadata": {},
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"#### 1st example\n",
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{
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"cell_type": "code",
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},
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{
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"cell_type": "markdown",
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"Let’s plot the agents’ time-1 endowments with respect to shocks to see\n",
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},
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"cell_type": "markdown",
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"Let’s also compare the optimal capital stock, $ k $, and optimal\n",
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{
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"cell_type": "code",
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},
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"#### 2nd example\n",
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{
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{
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{
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{
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"cell_type": "code",
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}
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],
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"metadata": {
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"date": 1761796503.5148394,
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"date": 1761798001.8186233,
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"filename": "BCG_complete_mkts.md",
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"kernelspec": {
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"display_name": "Python",

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