Chris Edmond, Professor of Economics, University of Melbourne
Brief Abstract: “In this presentation I will explain in detail how to solve and calibrate the model of heterogenous firms with endogenously variable markups analyzed in Edmond, Midrigan and Xu (2018 NBER wp). Models of this kind are used in research at the intersection of macro, IO and trade. I will explain how these models can be solved efficiently using projection methods and provide sample Matlab code illustrating the key steps."